This agreement sends a signal to the world: Nations that follow the path of democracy and responsible behavior will find a friend in the United States of America," Bush said at the signing ceremony for the U.S.-India Civil Nuclear Cooperation Agreement.
Trade of nuclear supplies with India, the world's largest democracy, was banned when the South Asian country tested an atomic bomb 34 years ago.
The Senate voted last week to overturn the ban. The House of Representatives later passed the bill without debate.
Secretary of State Condoleezza Rice has called the deal "a historic agreement" that put the United States and India on a "firm footing."
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