In a move that will open up a huge market for export of aeronautical products manufactured in India to the US, the two nations on Monday signed the Bilateral Aviation Safety Agreement (BASA).
"BASA would encourage indigenous aircraft and aeronautical products industry and the US acceptance of Indian products would help their global acceptance. It would lessen the economic burden of the aviation industry," an official statement said.
The deal, which was signed by secretary civil aviation Nasim Zaidi and administrator of the US' Federal Aviation Administration J Randolph Babbitt, will hugely benefit the nascent aircraft manufacturing industry in India and will spur trade between the two sides, it said.
Aerospace products made in India would be inspected and certified by Directorate General of Civil Aviation (DGCA) before being exported.
The agreement coincides with the visit of US secretary of state Hillary Clinton to India.