Indian Prime Minister Manmohan Singh has met US President George W Bush in New York on the second leg of his eight-day foreign tour.
Mr Singh praised the president's leadership
South Asian peace moves and boosting bilateral ties were among the main topics of a meeting described as "very warm, friendly and relaxed".
Mr Singh is in the US to attend the UN General Assembly, on his first major diplomatic trip since taking office.
He and Pakistani President Pervez Musharraf are to meet on Friday.
The two South Asian leaders are among about 100 heads of state and government attending the General Assembly.
Mr Singh kicked off his foreign trip in London, where British Prime Minister Tony Blair gave his backing to India's efforts to win a permanent seat on the UN Security Council.
Posing for the cameras with Mr Bush before they had their meeting, Mr Singh praised his host's "distinguished leadership".
"Our countries' relations have grown in diverse ways but I do believe the best is yet to come," he told reporters.
Mr Singh said he wanted progress on economic and high-technology issues with the US - last Friday Washington agreed to lift export controls on equipment for nuclear facilities in India after receiving non-proliferation assurances.
The talks in New York came as India denied it would make territorial concessions in the disputed Kashmir region to Pakistan.
A foreign weekly had reported that India was willing to "adjust" the Line of Control, the de facto border between the two countries, in Kashmir "by a matter of miles".
"This is completely and wholly inaccurate. Any suggestion that the prime minister will make such an offer [to Pakistan] is factually wrong," Indian foreign ministry spokesman Navtej Sarna told Reuters.
"There is no question of any territorial concession being offered by India to Pakistan."
Friday's meeting between the Indian and Pakistani leaders will be their first since Mr Singh became prime minister in May.
Pakistan hopes the talks will push forward a peace process which began at the start of the year but which its foreign ministry spokesman described on Monday as "sluggish".
Mr Singh's meeting with President Bush is a major diplomatic foray
Mr Singh promised in his talks in London that he would engage constructively with Pakistan over the Kashmir dispute, provided the threat caused by Kashmiri separatists could be kept under control.
President Musharraf has said he is looking forward to meeting Mr Singh and "dealing with all issues, very much including Kashmir".
Despite some improvement in trade and transport ties, the dialogue has done little to ease tensions over Kashmir, the spark for two wars between the nuclear-armed neighbours.
India accuses Pakistan of sponsoring an Islamic uprising in its part of Kashmir. Pakistan says it only lends diplomatic backing to an indigenous insurgency against Indian rule.