The US and India have signed a bilateral logistics exchange memorandum of agreement (LEMOA) in a bid to strengthen defence ties between the countries.
The LEMOA will facilitate sharing of land, air and naval bases for repair and resupply, according to media sources.
US Defense Secretary Ashton Carter and Indian Defence Minister Manohar Parrikar said that the military logistics agreement will provide additional opportunities for practical engagement and exchange.
The agreement does not allow US troops to be based in India.
US-India Business Council official Benjamin Schwartz was quoted by media sources as saying: "For years, there has been tremendous misinformation put out into the Indian press about these agreements.
"What the signing of this shows is that the Modi government is willing to take and suffer the short-term political criticism of signing these things for the longer-term benefit of building the defence relationship with the US."
Both countries have committed to cooperate in areas of mutual interest, such as counter-terrorism, maritime security, special operations, humanitarian assistance and disaster relief.
The nations recently completed the Malabar naval exercise with Japan.
India also took part in the Rim-of-the-Pacific (RIMPAC) exercise in Hawaii, as well as the Red Flag Air Force exercise in Alaska.
The Defense Technology and Trade Initiative (DTTI) between the countries was expanded by setting up new joint working groups for naval and air systems, intelligence, surveillance and reconnaissance, chemical and biological protection, and other applications.