US President Barack Obama has hailed India as an "indispensable" ally in a meeting with visiting Indian Prime Minister Manmohan Singh.

"This visit reflects the high esteem in which I and the American people hold your wise leadership," Obama told Singh as he welcomed him at the White House on Tuesday where a military band played the two nations' national anthems.

"Mr. Prime Minister, as we work to build the future, India is indispensable. As leading economies, the United states and India can strengthen the global economic recovery, promote trade that creates jobs for both our people and pursue growth that is balanced and sustained," Obama said.

Singh, for his turn, said India hopes to broaden and deepen its strategic partnership with the US to "meet the challenges of a fast-changing world in this 21st century."

Obama, who had caused unease in New Delhi with his early focus on neighbors China and Pakistan, assured that India was a true partner on his top priorities from counter-terrorism to climate change and fighting poverty.

The US and India would establish a new economic partnership and that US Treasury Secretary Timothy Geithner would travel to India for its launch early in 2010, the White House said in a statement after the meeting.

Echoing the strategic economic dialogue Washington already has in place with China, the statement added that the initiative would aim to strengthen engagement on macroeconomic, financial sector, development and infrastructure related issues.

"India will play a pivotal role in meeting the major challenges we face today. And this includes my top economic priority: creating good jobs with good wages for the American people," Prime Minister Singh told a joint press conference with Obama after the meeting.

Former president George W. Bush signed a landmark accord with Singh to allow cooperation on nuclear technology, ending New Delhi's long pariah status for declaring itself a nuclear weapons state.

Obama has pledged to go ahead with the accord but many Indians doubt the same agreement would have been reached had Obama been in the White House at the time.

HSH/AKM