Recognising India's rising demand for energy, Italy, an influential member of the Nuclear Suppliers Group, on Thursday agreed to discuss the need to adopt "forward-looking" approaches to enhance international civil nuclear cooperation under appropriate International Atomic Energy Agency safeguards with the country.

During Prime Minister Manmohan Singh's wide-ranging talks with his Italian counterpart Romano Prodi in Delhi, the two sides expressed their commitment to work towards establishing a strategic partnership.

They signed a memorandum of understanding on counter-terrorism, agreed on a two-year cultural exchange programme and inked another pact on renewable energy cooperation.

"Italy recognised the rising demand for energy in India and the need for international cooperation in this domain," said a joint statement issued at the end of the parleys.

India has been seeking the support of the 45-member NSG for full civil nuclear cooperation as a follow-up to its nuclear deal with the US.

The two sides "agreed to continue to discuss the need to adopt forward-looking approaches to enhance international civil nuclear cooperation under appropriate IAEA safeguards with India", the statement said.

Describing Prodi as a "friend of India," Dr Singh, at a joint press interaction with the Italian leader, highlighted the immense potential for economic and trade ties between the two countries.

Both sides agreed to continue to cooperate on implementing the UN Global Counter-Terrorism Strategy and work for the expeditious adoption of a comprehensive convention on international terrorism.

Seeking a "more efficient" United Nations, the two sides agreed to hold regular consultations on matters pertaining to the world body.

Dr Singh and Prodi also backed renewed efforts of the international community to achieve disarmament and non-proliferation objectives.

On India's claim to a permanent seat in the UN Security Council, Prodi said both countries have the same goal as aspirants for a role in the "new reality of the world."

New opportunities were seen by the two sides for enhancing cooperation in agri-business, textiles and clothing, leather, jewellery, woodwork, machine tools, automotive and auto components, energy, fashion, design, cinema and infrastructure.

They agreed to further increase cooperation between the Indian Space Research Organisation and its Italian counterpart Agenzia Spatiale Italiana.

Information technology, food processing and defence were other areas of cooperation that were identified.

To boost tourism, they agreed to consider increasing direct air links and facilitating contacts.

Prodi, who later called on President A P J Abdul Kalam, extended invitations to him and the prime minister to visit Italy that were accepted. Dates for the visits would be settled through diplomatic channels.

The joint statement said that both sides agreed to the need to enhance engagement between small and medium enterprises and favoured close cooperation for protection of intellectual property rights.

The two countries noted with satisfaction the "positive developments" in service sectors' potential in contributing to the strengthening of economic relations.

The two sides welcomed the establishment of the Joint Working Group on infrastructure and looked forward to achieving cooperation in this sector.

Both the leaders reiterated their commitment to work jointly in addressing global challenges and noted the scope for increased bilateral cooperation in the field of environment and the protection of natural resources.

They also reiterated their commitment to a rules-based multi-lateral trading system and noted the importance of a positive and balanced outcome of the Doha round of negotiations consistent with the mandate.