Setting out to launch a "new phase" in their strategic partnership, India and the US vowed to redouble their efforts to deal effectively with terrorism and in this regard signed an MoU to enhance cooperation particularly in information sharing and capacity building.

During their 90-minute meeting, Prime Minister Manmohan Singh and President Barack Obama agreed to step up cooperation and collaboration on pressing global challenges like terrorism and climate change and decided to take new bilateral initiatives in education, healthcare and agriculture sectors.

The two sides launched 'Singh-Obama 21st Century Knowledge Initiative' to increase university linkages and agreed to expand the Fulbright-Nehru programme. It was also decided that a Regional Global Disease Detection Centre would be set up in India as part of enhancing collaboration in the field of healthcare.

An initiative in clean energy and climate change was also announced.

Singh and Obama noted that the India-US partnership is indispensable for global peace and security and the US President said his country looked forward to a "stable and prosperous India playing an increasingly important role in world affairs."

He said the Indo-US ties would be the "defining relationship" in the 21st century.

Meeting two days ahead of the first anniversary of Mumbai attacks, the two leaders discussed the progress in case amid India's disappointment over the lack of "sincerity" and "urgency" by Pakistan in prosecuting those held in this connection.

Reiterating his condemnation of the attacks, Obama joined Singh in underscoring the "absolute imperative" to bring to justice the perpetrators of the terror strike.

Singh thanked Obama for the help extended by the US in investigation relating to the attacks.

A Joint Statement issued after the talks said the two leaders emphasised their shared interest in the "defeat of safe havens in Pakistan and Afghanistan".

"They expressed their grave concern about the threat posed by terrorism and violent extremists emanating from India's neighbourhood, whose impact is felt beyond the region.

"The two leaders agreed that resolute and credible steps must be taken to eliminate safe havens and sanctuaries that provide shelter to terrorists and their activities. These undermine security and stability in the region and around the world," it said.

Apparently referring to Pakistan, Singh said, "the forces of terrorism in our region pose a grave threat to the entire civilised world and have to be defeated."

Obama said, "obviously, Pakistan has an enormously important role in the security of the region, by making sure that the extremist organisations that often operate out of its territories are dealt with effectively."

Contending that Pakistan had begun to "recognise that extremism, even if initially directed to the outside, can ultimately also have an adverse impact on their security internally", the US president said progress had been seen in Pakistan's fight against terrorism as is indicated by Pakistan military action in West and South Waziristan.

With regard to Afghanistan, Obama said, "it is in our strategic interests, in our national security interests, to make sure that Al Qaida and its extremist allies cannot operate effectively in those areas."

He said the US-led international forces are going to "dismantle and degrade their capabilities and ultimately dismantle and destroy their networks."

Talking about the US campaign in Afghanistan over the last eight years, Obama said, "some of those years, we did not have, I think, either the resources or the strategy to get the job done. It is my intention to finish the job."