Trump also announced the appointment of Gina Haspel to head the Central Intelligence Agency -- the first woman selected for the agency's top post.
The camaraderie between Modi and Trump was on full display as the two leaders heaped praise on each other.
The announcement came as Secretary of State Rex Tillerson decided to re-designate about 10 countries as 'Countries of Particular Concern'.
The Trump Administration's consideration in this regard comes months after a successful meeting between Prime Minister Narendra Modi and President Donald Trump at the White House on June 26.
"I think it's clear to me that the ISI has connections with terrorist groups," General Joseph Dunford, Chairman of the US Joint Chiefs of Staff said.
Tillerson said the US will provide India with best technologies for its military modernisation which include offers to supply F-16 and F-18 fighter jets.
Pak can only access the money if it does more to crack down on internal terror networks launching attacks on neighbouring Afghanistan.
North Korea conducted a ground test of a new type of high-thrust rocket engine on Saturday.
Haley, in her forthcoming memoir, has claimed that former Secretary of State Rex Tillerson and former White House chief of staff John Kelly attempted to recruit her to undermine President Trump in an effort to "save the country," according to The Washington Post.
More than 600,000 Rohingyas from Myanmar's Rakhine state have fled to neighbouring Bangladesh, creating one of the world's most dire refugee crisis.
During his brief visit, Tillerson was given a tour of the room at the Birla House where Gandhi had spent his last 144 days.
The US were ready to mount an operation inside Pakistan, similar to the covert raid that killed Osama bin Laden.
US intelligence agencies had been tracking the hostages and shared their location when they were shifted to Pakistan.
Pakistan Prime Minister Shahid Khaqan Abbasi assured the Secretary of State that his country is committed to the war against terrorism.
'We appreciate his positive evaluation of the relationship and share his optimism about its future directions.' 'We look forward to welcoming him in India next week for detailed discussions on further strengthening of our partnership,' the MEA said on Friday.
Politicians, bureaucrats hold different opinions about the delaying of the 2+2 summit.
Modi and Trump will meet at 1.20 am (IST) following which they will have delegation talks and then a dinner.
'Did Trump hint at US military intervention in Qatar?' asks Ambassador M K Bhadrakumar.
Early this month, Trump had unceremoniously fired Secretary of State Rex Tillerson and nominated Mike Pompeo
The announcement by Attorney General Jeff Sessions comes within days of President Donald Trump firing his Secretary of State Rex Tillerson.
Pervez Musharraf is contemplating a political front with jihadi groups to contest Pakistan's next election. Should the jihadi groups win a few seats, terrorist outfits will gain legitimacy in Pakistan, warns Brigadier S K Chatterji (retd).
Propelled to the position of the Secretary of State to "undo" years of American foreign policy "blunders and disasters", ExxonMobil CEO Rex Tillerson now faces the biggest challenge of his life to translate his business acumen to international diplomacy.
BWith a distracted president brooding in the White House, Pompeo seems to think his day has come. He seems to be pushing a personal agenda before a target audience in America, observes Ambassador M K Bhadrakumar.
Mattis said the Trump administration is being very clear and firm in what it expects from Pakistan.
The US, the official said, is monitoring the situation carefully in Pakistan and expects some progress.
Nick Ayers, the 36-year-old chief of staff to the vice-president Mike Pence, is Kelly's likely successor.
'Islamabad receives billions in aid from the US but continues to harbour terrorists,' he said.
After personally overseeing the test Kim Jong-un 'said American bastards would be not very happy with this gift sent on the July 4 anniversary'.
The Trump administration has a "very positive view" of the Indo-US relationship and a lot of interest in taking the ties forward, Foreign Secretary S Jaishankar said on Saturday after his wide-ranging talks with senior Cabinet members and top officials in Washington.
External Affairs Minister Sushma Swaraj told the Rajya Sabha that this is an issue of concern not just for the government and the Opposition, but the entire House and the nation shares this concern
Secretary of State Rex Tillerson has told Pakistan that it must take action against terrorist groups and dismantle their safe havens on its soil.
Jim Mattis in his resignation letter to the US president wrote that he deserved a defence secretary whose views were better aligned with his on these and other subjects.
However, the WH Press Secretary says that the right circumstances for a meeting between the two leaders does not exist right now.
The State Department and the White House too said that the US expects Pakistan to take decisive action against terrorists operating from its soil.
"We want to work closely (with) Pakistan to create a more stable and secure Pakistan as well," he said.
Tillerson said China's behaviour and action is "posing a challenge to the rules-based international order".
Sitharaman has completed just 19 days as defence minister and is also pre-occupied with the Gujarat assembly election, notes Ajai Shukla.
Officials said the addition shows the measure was set on the basis of security and was not a 'Muslim ban'.
The two Koreas agreed during rare talks on Wednesday to form a combined women's ice hockey team to take part in next month's Winter Olympics in the South.
Since 1975, the United States has welcomed more than 3 million refugees from all over the world.
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