Asserting that the India-US relationship will be indispensable in shaping the 21st century, US president Barack Obama said the partnership had limitless potential to improve lives.

The partnership between India and the US could be the anchor for security, progress and prosperity for Asia and the world, Obama said in his address at St Xaviers College.

He said he was determined to take the partnership to a new level. We have extraordinary amount of respect for the rich and diverse civilisation that has thrived here and we draw strength from Indias struggle for freedom, which, he said, had also inspired Americas own movement.

He said while the rest of the world may view India as a rising power, the US believed that India had already risen. India is taking its rightful place in Asia and the global stage and we see Indias emergence as good for US and the world, he said.

He also added: The US has enormous fondness for India. I believe India will be a critical partner with the US in the 21st century. It was true when Bush was president, it was true when Clinton was president. Fundamental belief will not be altered in significant way.

He admitted that for most of his lifetime, the US has had such dominant economic power, such a large market. However, Obama said: Now, because of incredible rise of China, India and Brazil, while the US still remains the largest economy, theres competition out there. Thats potentially healthy. This will keep the US on its toes.

Stressing on the need for negotiation, he said: If India was protecting certain sectors of its economy, it didnt have an effect on us. Now things have changed. Now its not unfair for US to say that if our economy is open to everybody, countries have to open up markets for us. If we can have those kinds of conversations, then well be fine. There has to be reciprocity with our trading partners.