Washington: The US has transformed ties with New Delhi on the conviction that American interests require a strong relationship with India and differences could be best addressed by a partnership, an official document has said.

The two countries are the largest democracies, committed to political freedom protected by a representative Government. India is also moving towards greater economic freedom. They also share an interest in fighting terrorism and in creating a strategically stable Asia, it said.

"Differences remain, including over India's nuclear weapons programmes and over the pace of India's economic reforms. But while in the past these concerns may have dominated US thinking about India, today the US starts with a view of India as a growing world power with which it shares common strategic interests," the US State Department said in its profile of India just updated.

"In Sept 2001, President George W Bush lifted the sanctions that were imposed under the terms of the 1994 Nuclear Proliferation Prevention Act following India's nuclear tests in May 1998. The non-proliferation dialogue initiated after the 1998 nuclear tests has bridged many of the gaps in understanding between the countries.

"President Bush met (the then Prime Minister) Vajpayee in November 2001, and the two leaders expressed a strong interest in transforming the US-India bilateral relationship. High-level meetings and concrete cooperation between the two countries increased during 2002 and 2003."

US and India announced on Jan 12, 2004, the 'Next Steps in Strategic Partnership', a milestone in transformation of the bilateral relationship and a blueprint for its further progress, it said.