At a rare reception hosted in her honour by the Senate India Caucus at the Capitol Hill, Rao said the growth of the knowledge economy has brought forth new areas of cooperation and the ties have the potential to shape the destiny of the people of the two countries.

"Economic partnership has emerged as the bedrock of our strategic relationship, with innovation as its defining basis, creating jobs and bringing prosperity to our peoples," Rao said in her address to the members of the Senate and Indian American community from across the country.

"The growth of the knowledge economy is as an exciting in terms of being frontline of our engagement today. Newer areas of cooperation such as nuclear energy, high technology and clean energy resources are making our partnership mutually more rewarding, with flow of ideas, knowledge and people in both directions," Rao said at the event attended by Senate members like Kay Hagan, Saxby Chambliss, John Cornyn, Mark Warner, Roger Wicker, John Kerry, Charles Schumer and Michael Binnet, among others.

Cornyn and Warner are co-chairs of the Senate India Caucus, which hosted the event. A welcome reception for a new Ambassador is a rare event at the Capitol Hill.

Under Secretary for Political Affairs, Wendy Sherman, also attended the event.

"As India and the United States embark on their Global Strategic Partnership, the horizon of possibilities of what we can do together traverses across all aspects of human endeavour, from the political and strategic to social, economic, innovation, education and frontier science.

"Our partnership has the potential to shape the destiny of our peoples, and indeed, of the larger humanity," Rao said.

"It is the relationship that is unique in that it goes way beyond what only Governments can do. The energy, creativity and enterprising spirit of our people, private sector and civil society are building new bridges across hitherto uncharted waters," said the Indian Ambassador who arrived in US as New Delhi's top diplomat some three months ago.

Referring to the recent statement by Prime Minister Manmohan Singh, that there were "no irritants whatsoever in our working together on a multiplicity of areas", Rao said this defines the canvas of partnership between the two countries.

Referring to the concerns the two countries have about the terrorism in the region, the Ambassador said counter-terrorism is one of the pillars of cooperation between India and the US.

"But there are many many more such areas that together create such a strong foundation for our partnership in these years and times," Rao said.

With India in the midst of a national endeavour to achieve socio-economic development for its billion-plus population in an inclusive and participatory way, Rao said in this task, India sees the US with its economic and technological prowess, as an important partner.

She also praised the contribution of the strong Indian American community.

"I would be remiss without highlighting the contributions of the 2.7 million strong Indian-Americans, whose vigour and drive had added new vitality in our relationship," she said.

"You are a bridge between our two countries, as well as a window to India's civilisation, culture and traditions in this country. Your support and contribution to this relationship will always remain a source of strength for our work," Rao said.