"India and the United States recognise that there is a vast scope for bilateral high technology commerce, including civilian space commerce," Singh said in a speech read out by junior minister Prithvi Raj Chauhan at the start of an India-US Conference on Space Science, Applications and Commerce.

"Strong economic ties in high technology based on mutual trust can greatly supplement our shared values and political interest."

He said the conference, held in the southern IT city of Bangalore, would help identify and generate awareness about markets opportunities.

Relations between India and the US have warmed dramatically in the past few years after Washington lifted sanctions slapped on India's nuclear and space programmes following New Delhi's nuclear test blasts in 1998.

The sanctions resulted in a freeze on exchanges in nuclear and other high-tech sectors such as "dual-use technology" which finds applications in both civilian and military use.

But some of the sanctions are still in place, especially for divisions that fall under India's premier space agency, Indian Space Research Organisation (ISRO), said Madhavan Nair, ISRO chief.

Kenneth Juster, US Under Secretary of Commerce, denied sanctions were still in place and said it was a "misconception".

"The sanctions were lifted in September 2001. We still have with India, as we do with every country in the world, licencing requirements for certain sophisticated elements of high-technology trade," Juster said.

He said a high-technology cooperation group set up by both nations was looking into expanding trade and pulling down barriers in the sector to woo private firms.

A statement by US President George W. Bush, read out at the conference, urged participants to identify new opportunities for cooperation in space.

"India and the US share a history of more than four decades of cooperation in space ... This conference gives participants and our fraternity to identify new opportunities for civil space cooperation, to answer scientific questions, improve the quality of life for others and inspire the next generation to explore our universe," Bush said.

US Ambassador to India David Mulford said America wanted to deepen the dialogue with India on missile defence.

The conference is a follow-up to a landmark meeting between former Indian prime minister Atal Behari Vajpayee and President Bush in November 2001.

More than 500 Indian and foreign delegates are attending the meeting, among them 150 US officials and industry representatives.

SPACE.WIRE