New York: Pointing out that Indo-US relations have undergone a "major transformation" in recent years, Prime Minister Atal Behari Vajpayee on September 23 said the growing partnership is "an important element" in the efforts for a dynamic and cooperative multi-polar world order.

"The strength of this relationship derives from a greater understanding of our basic commonalities. The end of the Cold War has enabled us to enhance our engagement, based on a convergence of many geopolitical perspectives," he said addressing the Asia Society in New York.

The two countries, he said for the first time entered into substantive Defence cooperation. "Our Armed Forces have established contact and there are regular exercise and exchanges of growing complexity."

He said the two countries' common concern on terrorism, trans-national crime and cyber crime have led them to improved bilateral ties.

The range and frequency of the India-US dialogue has increased considerably in recent times and it covers global and regional matters as well as long term and short term issues, said Vajpayee, who is meeting US President Bush on September 24.

"But most significantly, it is the atmosphere of our dialogue that has changed. We now address each other with the confidence and candour of friends. This dialogue, based on respect and equality is successful precisely because we have recognised that there is no fundamental conflict of interest between us," he said.

PTI