Story highlights Obama hopes to capitalize on his relationship with Indian Prime Minister Narendra Modi

India and the United States have shared sometimes frosty relations

The United States wants to ease India away from its use of Russian-produced military weapons

New Delhi (CNN) The leaders of India and the United States, testing the diplomatic extent of their personal friendship, said on Sunday they'd made progress on a deal allowing U.S. firms to cooperate on civilian nuclear power plants in India.

U.S. companies are reluctant to construct nuclear plants in India if they aren't shielded from liability after accidents, an assurance Indian lawmakers have been unwilling to extend. President Barack Obama and Prime Minister Narendra Modi stopped short of announcing a full-fledged deal but did say they'd moved forward on the issue.

"This is an important step that shows how we can work together to elevate our relationship," Obama said during a press conference that came after bilateral talks with Modi.

Obama touched down in India on Sunday for a truncated state visit that has officials claiming a new era in U.S.-India relations is dawning.

Obama hopes to capitalize on his young friendship with Modi to achieve diplomatic progress on climate, defense and trade -- progress that has eluded U.S. leaders in the past. In a surprise break in protocol, Modi greeted Obama on the tarmac on his arrival in New Delhi and wrapped him in a hug.

Read More