Singh initially expressed "disappointment" in a telephone call with President George W. Bush on the offer because it included a decision by the United States to resume the sale of F-16 fighter jets to Pakistan.

However, speaking to reporters Wednesday on his way to the Indian Ocean island nation of Mauritius, Singh changed his tone to one of cautious welcome.

"India welcomes the development," Singh told reporters covering his state visit. "The fact is that the US has expressed its willingness to engage in matters related to increased cooperation in matters related to nuclear as well as non-nuclear issues."

The United States cut all civilian nuclear sales and cooperation to India after the country tested a weapon in the desert state of Rajasthan in 1974.

As well, India has not signed the Non-Proliferation Treaty which bars the United States and other countries from selling civilian nuclear reactors to countries that test or acquire nuclear weapons outside of the five permanent members of the United Nations Security Council.