Washington: The United States favours close co-operation and friendship with India, but in a way that does not hamper Washington's relations with Pakistan.

"The US works hard to have the best relations with nations large and small, old and new. But it is important that we concentrate on those major powers, and especially on those with which we have had different and difficult relations over the years," Secretary of State Colin Powell said in a wide-ranging speech he delivered at George Washington University on September 6.

"Our relationship with Russia and China and India fall into this category. And just look where we are now."

He said US wanted to work with India and help it overcome its challenges and "we want to help ourselves through a closer association with one of the world's richest and most ancient cultures.

"We have, therefore, worked very hard to deepen our relationship with India. The two largest democracies on earth are no longer estranged, as they had been for many years. At the same time, we have done this in a way that also allowed us to improve our relationship with Pakistan, a country with domestic challenges of its own."

India's democracy dates from its Independence in 1947. And with recent economic reforms settling institutional roots, India is developing into a mature market economy. As Indians themselves are the first to admit, however, their country still faces many challenges – illiteracy, poverty, many others – which hamper their progress, Powell said.

"About 15 month ago, you will all recall, we were fearful of a major war breaking out on the subcontinent, possibly a nuclear war. A distinct possibility. So, once again with our partners, we came together and working with India and Pakistan we defused that crisis and now we see the situation improving as they reach out to one another. And we look forward to helping them in every way that we can."

Powell said the US had turned "adversity into opportunity" in the South Asian sub-continent.

The Secretary of State said the American global war against terrorism is on track and that the scourge of terror is not just US' problem, but a universal one.

"The civilised world had to come together under his (George W Bush's) leadership to deal with it (terrorism). Just in recent months, terrorist attacks have made far too many headlines, in far too many places. In a resort in Bali, in a bus full of children in Jerusalem, in a Bombay marketplace, at the UN headquarters in Baghdad, in front of a sacred mosque in Najaf (Iraq).

"Our grief knows no borders. Neither does our determination to put an end to such outrages against innocent people. The war on terrorism is our number one priority, and it will remain so for as long as necessary. We are succeeding in the global war on terrorism. The victories of our armed forces in Afghanistan and Iraq form part of that success. Afghanistan will be rebuilt."

PTI