Washington- India and US have signed a 10-year agreement to strengthen defense ties between the two countries.
The landmark agreement will help facilitate joint weapons production, co-operation on missile defense and the transfer of technology.
Indian Defense Minister Pranab Mukherjee and US Defense Secretary Donald Rumsfeld signed the agreement.
"The United States and India have entered a new era," a statement issued after the signing of the agreement in Washington said.
"We are transforming our relationship to reflect our common principles and shared national interests."
According to AFP news agency, the statement said the ministers agreed to set up a "defense procurement and production ”group” to oversee defense trade, as well as prospects for co-production and technology collaboration".
The statement said that the two nations had advanced to "unprecedented levels of cooperation".
The defense pact came ahead of a three-day visit by Indian Prime Minister Manmohan Singh to the US in July.