The United States has entered into an accord, which will make it easier for American firms to sell India 'dual use' technology with military and civilian applications.
US embassy spokesman Gordon Duguid said the agreement is a transformation of Indo-US relations over tha past two years.
High-technology trade can cover anything from equipment that could be used to build nuclear-capable missiles to high-speed computers.
The agreement is a complete turnaround from its sanctions imposed after India carried out its nuclear test in 1998.
The US has agreed with India on a plan to boost high-technology trade, and comes as Washington is battling to prevent the proliferation of weapons technology elsewhere.
Though sanctions were waived in 2001, India has shunned buying from US firms fearing supplies could dry up if sanctions were imposed again.
One US official said the agreement should boost trust and confidence between the two countries.
The United States is believed to be lobbying hard to persuade India to buy air force trainer jets from Czech state-run Aero Vodochody, in which Boeing holds 35 percent, instead of the Hawk jets built by Britain's BAE Systems Plc.
