It said in its statement that Lockheed Martin and Boeing stand to be major beneficiaries of the EUM. Both companies are bidding for India's Medium Multi-Role Combat Aircraft (MMRCA) tender, valued at more than $10 billion.

The two companies were competing against Russia's Mig-35, France's Dassault Lockheed Rafale, Sweden's Saab Gripen and the Eurofighter Typhoon for this contract, which is one of the biggest defence deals going anywhere in the world.

The EUM agreement will also enable other US defence companies to be more proactive in participating in India's defence and security market, the USIBC said.

The USIBC also welcomed the decision of the Indian government to identify two greenfield site locations for commercial nuclear development dedicated for the US companies.

"This allotment by India is a welcome transition from conceptualising US-India civil nuclear cooperation to actual implementation," said Somers.

"Companies like General Electric and Westinghouse, supported by other major US suppliers, will now be able to commence site work, perform geotechnical investigations, and complete feasibility studies - all necessary steps that lead to actual implementation and eventual generation of carbon-free nuclear power," Somers added.

Sites of significant acreage, which will provide for future unit expansion as well as forested buffer zones, have been identified by Indian authorities for implementation of US-supplied plants in Andhra Pradesh and Gujarat.

"These are both excellent locations where the people of these states appreciate and understand the benefits of reliable electric supply, and where human talent to erect and maintain these state of the art facilities is plentiful," Somers said. "With this major milestone, we now look forward to India allowing the full-scale participation of the dynamic Indian private sector in India's civil nuclear build-out."