Updated
New Delhi, Jan 25 (IANS): India and the US Sunday announced the much-anticipated breakthrough agreement on commercial implementation of their landmark civil nuclear deal, six years after it was signed, and also entered a new strategic phase of co-production of some defence projects, as Indian Prime Minister Narendra Modi and visiting US President Barack Obama held talks marked by much warmth and camaraderie.
Both Obama and Modi announced that the "breakthrough" had been arrived at in the civil nuclear deal - which ended decades of India's nuclear isolation because of its refusal to sign the Nuclear Nonproliferation Treaty (NPT) - during the joint press interaction after a marathon over three-hour talks at the Hyderabad House.
Modi said in his speech: "I am pleased that six years after we signed our bilateral agreement, we are moving towards commercial cooperation, consistent with our law, our international legal obligations, and technical and commercial viability."
Obama, describing it as a "breakthrough understanding", said the two leaders agreed to "advance our civil nuclear cooperation and we are committed to moving toward full implementation".
"It is an important step and shows us how we can work together to elevate our relationship."
"The deal is done... We have broken the logjam of the past few years," said Foreign Secretary Sujatha Singh, briefing newspersons later.
She acknowledged that the "political leadership played key role" in pushing forward the agreement.
The Indo-US nuclear contact group, that has held three meetings including one that ended in London just a day ago, had been working at a frenetic pace to tide over concerns from both sides ahead of the Modi-Obama meeting.
Sujatha Singh said there were "very specific political directions to address the concerns" on both sides.
"There is a clear intention to reinvigorate the relationship and take it forward," she said.
She also said both leaders were committed to work jointly for India's entry to the four multilateral export controls regimes - the Nuclear Suppliers Group, the Missile Technology Control Regime (MTCR), the Australia Group, and the Wassenaar Arrangement.
She said Obama "supports an early decision on India's entry into all four regimes".
In the field of defence, the two sides renewed the 10-year Defence Framework Agreement and the Defence Trade and Technology Initiative (DTTI).
The new framework is to enhance the bilateral defence partnership with more intensive joint military exercises and maritime security efforts among others.
Under the DTTI, which is for co-production, both have agreed on four projects, including the Raven unmanned aerial vehicle (UAV), and the "roll-on, roll-off" intelligence, surveillance and reconnaissance module for the Lockheed Martin-manufactured C-130 J transport aircraft, Sujatha Singh said.
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 US," Modi said.
The two sides also inked three MoUs between the US 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 US 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-US 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 US insistence on control in perpetuity over the nuclear fuel and equipment.
The contact group was set up during Modi's US visit in September last year. It was charged with advancing the implementation of the stalled nuclear deal.
The US 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-US 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 US' rebalance to Asia and said it provides "opportunities for India, the US, 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 US 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.
Obama attends president's banquet, praises Modi's work ethic
US President Barack Obama Sunday praised Narendra Modi for his "legendary work ethic", and described him as tough and stylish. He praised the Indian prime minister's sartorial elegance and said he was also thinking of wearing a "Modi kurta".
Speaking at the dinner banquet hosted by President Pranab Mukherjee at Rashtrapati Bhavan, Obama marvelled at how Modi, the son of a tea vendor, became prime minister of the world's largest democracy.
"Here this evening, we think back to all these years ago... your (Modi's) father selling tea at the train stations, your mother working at other's families homes to support and earn. Tonight, their son welcomes us as the prime minister of the world's largest democracy," Obama said.
Visibly impressed with Modi's work style, Obama said: "We all know about the prime minister's legendary work ethic. He was explaining to me today how he only needed three hours' sleep which made me feel bad. I thought I was doing okay with five."
"What I didn't know until now is that he once survived an attack by a crocodile. So he is tough," he said.
Praising Modi for his "style" and sartorial elegance, Obama said "tonight, I was thinking about wearing a Modi kurta myself" to smiles around.
President Pranab Mukherjee, in his banquet speech, said the presence of Obama at the Republic Day parade will demonstrate to the world the growing ties of friendship and trust that bind the two democracies closely.
The president said Obama had made history thrice - by becoming the first US president to be chief guest at the Republic Day, the first US president to visit India twice while in office, and by holding a second summit-level meeting with the prime minister in the shortest-ever time span of four months.
"These milestones make this a truly historical visit. While I am proud that we are creating history together, I am even more pleased that we are creating a brighter future together - for our two countries and the world," he said.
The event was graced by a galaxy of personalities from various fields, including politics, business and art.
Mukherjee, Obama and his wife Michelle met the invitees which included former prime minster Manmohan Singh, Congress president Sonia Gandhi and BJP leader L.K. Advani.
Prime Minister Modi was among the first to greet Obama and his wife. Ministers in the Modi cabinet were also present.
Obama had a word with many of guests. One of them wrapped a shawl around his shoulders.
Michelle, who was attired in a floral printed dress, also exchanged pleasantries with the guests.
Business leaders, including Ratan Tata and Mukesh Ambani, were among those present.
The dinner had both non-vegetarian and vegetarian dishes. The main course included mustard fish curry, chicken korma, gushtaba, roast leg of lamb, mutton rogan josh (all non vegetarian dishes) and kadhi pakori, dal raisina, achari paneer, chhole, haak ka saag, chaunka matar and bedmi aloo (all vegetarian dishes).
The menu included vegetarian and non-vegetarian tandoori platters, curd, saffron rice, papad, soup and a variety of Indian bread.
The desserts included malpua with rabri, date steam pudding and cut pudding.
Tea, coffee and kahwa were among the beverages served in the dinner, during which various musical scores were also played.
Earlier Report
Obama arrives in India, PM Modi receives him
New Delhi, Jan 25 (IANS): US President Barack Obama, accompanied by his wife Michelle, arrived here Sunday morning on a three-day India visit - his second in four years - during which he will be the chief guest at the Republic Day parade Jan 26. Breaking with protocol, Prime Minister Narendra Modi received him at the VVIP terminal of the Indira Gandhi International Airport where both leaders greeted each other with a spontaneous hug .
As he alighted from his Air Force One presidential jet shortly after 9.45 a.m. local time, Modi, dressed in a beige Nehru jacket paired with a red shawl, welcomed Obama, wearing a dark suit, with a handshake and a hug. They kept clasping hands, chatting and joking like old friends.
The US president was accompanied by his wife Michelle, wearing a printed knee-length blue printed dress and teamed with a matching long jacket.
The arrival ceremony was surprisingly brief, the welcoming party made up only of Modi, minister-in-waiting Piyush Goyal and US ambassador Richard Verma.
The Obamas and Modi posed for the visual media and waved hands and the First Couple boarded The Beast, the presidential limousine, that was parked right across the red carpet for the drive to the ITC Maurya, where they will be staying during the visit.
Obama will later be accorded a red carpet ceremonial welcome at the Rashtrapati Bhavan, where he will be received by President Pranab Mukherjee and inspect a guard of honour.
Thereafter, he will proceed to Rajghat where he will lay a wreath at the memorial to Mahatma Gandhi, the father of the nation, and plant a sapling.
At 1 p.m., Obama is to attend a luncheon meeting with Modi at Hyderabad House.
The two sides will hold delegation-level talks at Hyderabad House and later address the media.
In the evening, Obama would call on President Pranab Mukherjee at Rashtrapati Bhavan and also attend a banquet hosted by the president.
Obama is here at the head of high-level delegation that includes Democratic House minority leader Nancy Pelosi and Ami Bera, co-chair of the Congressional Caucus on India and Indian Americans.
This is Obama's second visit to India as president and the first time a US president will be the chief guest at the Republic Day parade.
He was to have flown down to Agra to see the Taj Mahal Tuesday, but that has been cancelled and he would be flying to Riyadh to condole the death of Saudi king Abdullah.