Obama Visit: India, U.S. Achieve Breakthrough In Civil N-Deal Implementation

Both sides are also to form a working group to explore technology for aircraft carriers and also share the design of jet engine technology.

Modi, in his opening address in English at the press interaction, said both have decided to take "our growing defence cooperation to a new level".

In the field of energy, Obama expressed interest in participating in India's 100 gigawatt solar energy project.

Both sides also resumed talks on the bilateral investment treaty and on a totalisation agreement.

"We will also resume our dialogue on bilateral investment treaty. We will also start discussions on social security agreement that is so important for the hundreds and thousands of Indians professionals working in the U.S.," Modi said.

The two sides also inked three MoUs between the U.S. Trade and Development Agency and the governments of Andhra Pradesh, Rajasthan and Uttar Pradesh for the smart city projects involving Ajmer, Allahabad and Vishakhapatnam.

The U.S. is also cooperating with India on the Digital India programme.

Two-way trade which stands at $60 billion is poised to reach the $100 billion mark by 2018. The US is keen that the trade figure should reach $500 billion by 2020.

The breakthrough on the civil nuclear deal was arrived at after the India-U.S. nuclear contact group held talks in London that were extended by a day in order to arrive at a consensus.

Besides the US' concerns over India's stringent civil nuclear liability law that puts the onus for any accident on suppliers, India had objection to the U.S. insistence on control in perpetuity over the nuclear fuel and equipment.

The contact group was set up during Modi's U.S. visit in September last year. It was charged with advancing the implementation of the stalled nuclear deal.

The U.S. and India are also working towards a proposal to set up a $250 million insurance pool with money from all stakeholders to pay off any liabilities.

The insurance pool is aimed at indemnifying companies building nuclear reactors in the country, against liability in case of an accident.

In a joint statement, the two sides also elevated the bilateral relationship through their endorsement of a new India-U.S. Delhi Declaration of Friendship, which builds on their Sep 30 Vision Statement.

Both noted commonalities in their regional policy - in India's 'Act East Policy' and the U.S.' rebalance to Asia and said it provides "opportunities for India, the U.S., and other Asia-Pacific countries to work closely to strengthen regional ties".

The two also announced a Joint Strategic Vision to guide their engagement in the region.

The two leaders pledged to translate their commitment of "Chalein Saath Saath": "Forward Together We Go" of September into action through "Sanjha Prayaas; Sab Ka Vikaas": "Shared Effort; Progress For All".

Obama, who arrived in the morning, was first accorded a ceremonial welcome at Rashtrapati Bhavan after which he went to Rajghat to lay a wreath at the memorial of Mahatma Gandhi and also planted a sapling. He held marathon talks with Modi in Hyderabad House over luncheon.

The two also strolled in the green lawns of Hyderabad House without aides and had tea, with Modi pouring the tea for his VVIP guest.

The "chai pe charcha' moment drew smiles when it was referred to at the joint presser, and Obama thanked the prime minister.

Modi also said the two sides have decided to set up a hotline between the two leaders.

To a question on their body language, he referred to the U.S. president with the first name, saying that "Barack" and he have been maintaining contact over phone, and also chat.

He said the personal equation between two leaders goes a long way towards bringing two nations and their people together.

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