"By and large, we are looking to India as a great up and coming space-faring nation to work with us," Peter Marquez, Director of Space Policy, at the National Security Council, told reporters at a conference call after the White House unveiled the new National Space Policy.
The new policy is designed to strengthen US' leadership in space and putting emphasis on greater cooperation with India in this field.
"We see that there's great potential there and we would love nothing more to continue to build upon the great foundation we have with India and expand that cooperation," Marquez said.
Despite the fact that the Indian Space Research Organization (ISRO) is in the entities list, NASA collaborated with ISRO through the Chandrayan-I that detected water on the moon.
India has demanded that ISRO be removed from the entities list that poses a major hurdle in the space co-operation between the two countries.
Marquez said US President Barack Obama has discussed with the Prime Minister Manmohan Singh on issues related to space cooperation between the two countries.
"Cooperation with India is vitally important to as we go forward in a variety of areas -- not just in the civil space -- you know, in NASA area where we have had cooperation, but also in the climate change and earth observation area," he said.
"We will look for greater cooperation there. We do understand there may be areas in national security where we're going to have discussions with India," he said in response to a question.
Meanwhile, a senior Administration official said the United States consulted with several countries including India on its new space policy.
"I think we're in the early stages right now, but we look very much forward to beginning a dialogue with India and other emerging space nations," the official told reporters.
In a statement after the White House unveiled the basic contours of the new space policy, Obama said, "This policy is about the boundless possibilities of the future."
"That is why we seek to spur a burgeoning commercial space industry, to rapidly increase our capabilities in space while bolstering America's competitive edge in the global economy", he said.
He said the administration is proposing improved observation of the earth, to gain new insights into the environment and the planet.
Another senior Administration official noted that there has been a healthy dialogue with India already and the goal would be to continue that.
"So with respect to specific programmes or what have you that we might consider, that's something that we would need to discuss.
"But I think the idea is to build in the foundation that already exists," he said in response to a question.