Speaking on the sidelines of a conference organised by the PHD Chamber of Commerce and Industry (PHDCCI), Mr Celeste told the Financial Express that India at present didn't seem to be interested in imports. He evaded elaborating their stand on the issue. The US after being unsuccessful in exporting second-hand cars to India took up the matter to the WTO dispute settlement body a year-back. The EU has also reportedly taken up the issue.

Union industry minister Murasoli Maran recently said that the government was committed to protect the interest of the local Indian industry.

However, since India is a WTO signatory it would have to open up this sector sooner or later.

The US ambassador evaded commenting on reports that South Korea had replaced the United States as the largest foreign direct investor to India. "I have yet to see the figures and would be unable to comment on the issue before that," Mr Celeste told The Financial Express.

The strengthening of ties after the visits of President Bill Clinton to India and Prime Minister Atal Bihari Vajpayee to the US, are unlikely to be affected by the change in administration in Washington after the upcoming Presidential elections, the ambassador said.

The new administration would like to utilise the opportunities for further strengthening bilateral relations, he added.

Officials from the ministries of external affairs and home along with military experts and the US state department would hold the first meeting of the Indo-US joint working group on peace-keeping here in mid-November.

Asked how the US viewed India's decision for a phased withdrawal of its peace-keeping force from Sierra Leone, Mr Celeste said the decision to pull-out was taken by New Delhi based on its assessment of the situation.

Referring to the immediate fallout of the Pokhran nuclear explosions, he said there had been a sense of uncertainty on whether both sides could find ways to move forward and also a sense of betrayal.

He said both sides were engaged in creating a road map that would address their respective security concerns and ensure that they don't face any threat from countries having weapons of mass destruction.

Mr Clinton's visit to India has opened a new chapter of bilateral relations between the two countries, Mr Celeste said, adding private sector had to play a lead role in increasing trade and investment.

The two governments would take up various issues including the textile agreement, to increase trade, he said. "We are hopeful that after India comes up with its textile policy there would be good prospects on the front," he added.

The US ambassador called for increasing air capacity as this could enable the country's foreign exchange earnings to increase. "Many tour operators in the US do not consider India due to shortage of seating capacity," he pointed out.