Friday, January 21 2005 18:42 Hrs (IST) - World Time -

New Delhi: As the Bush Administration assumed charge for the second consecutive term, the US has envisioned a substantial growth in strategic and economic relations with India but is non-committal on New Delhi's claim for permanent seat in an expanded UN Security Council (UNSC).

"During the first term of the Bush administration, the relations with India saw an all-time high. During the second term, it is going to get better," American Ambassador to India David C Mulford, said on Karan Thapar's 'Tonight at 10' programme telecast on CNBC TV last night (Jan 20, 2005).

Asked whether the US was concerned about terrorist infrastructure in Pakistan not being dismantled, the envoy replied in the affirmative and said, "We are against terrorism and have come openly about it. Pressure has been applied on Pakistan also."

Asserting that Indo-US relations were "free-standing" and independent of America's ties with Pakistan, he said, Washington was confident of developing all-round relations with New Delhi, particularly strategic and economic.

Talking about the Next Step in Strategic Partnership (NSSP), Mulford described it as a "complex area of negotiations" requiring a "phased process."

He said the main reason for complexity of the issue was that India was not a signatory to non-proliferation pact.

"We are really seeking ways to work around that problem by allowing the US to honour its obligations to the treaty and to other allies and at the same time opening up relations with India. India is the only country in the world we are doing so. This is a very important exercise," Mulford said.

Mulford said NSSP was the cornerstone for Indo-US strategic relations said he expected development of comprehensive relations, including the economic and those, which touch all areas of human activity.

Referring to the recent decision of forging 'open skies' ties, the US envoy said it would mark a significant step in the bilateral relations and completely open air travel between the countries.

He pointed out that US was the biggest air market for India.

When India's concern over possible US sale of nuclear-capable F-16 fighters to Pakistan was pointed out, Mulford said there has been no decision on it so far as the "matter is still under consideration."

On the ongoing Indo-Pak dialogue, he said the US has encouraged both the countries with regard to the process. "But the US is not going to be a manager or referee in the process although we will continue to encourage them to find, between principles, the basis for agreement to resolve disputes and move to full-time peace."

About the US expectations on business front, the Ambassador said all kinds of opportunities were being envisioned, of which many had been found.

He said India would have to seek significant increase in Foreign Direct Investment (FDI) of all kinds.

"India is moving in the right direction in economic reforms and as it continues to make reforms in its benefit, we will also benefit," Mulford said.

When referred to India's claim to a permanent seat in the UN Security Council, the Ambassador said US had received a UN report on reforms in the world body but was yet to take a decision.

"The matter (of India's claim) will be examined and opinions will be taken," he said.

Mulford noted that US President George W Bush had a "different vision of the world initiative." While recognising the importance to the United Nations, he said Bush sees opportunity for India and US to work together in many ways.

To a question, he said Bush would like to visit India and it was under consideration.