US President Barack Obama walks with Indian PM Narendra Modi from the gardens of the Hyderabad House in New Delhi on Sunday.

NEW DELHI: Indian Prime Minister Narendra and US President Barack Obama announced they had reached an agreement Sunday to break the deadlock that has been stalling a civilian nuclear power agreement.

“I am pleased that six years after we signed our bilateral agreement, we are moving toward commercial cooperation, consistent with our laws (and) international legal obligations,” Modi said at a joint press conference with Obama in the Indian capital New Delhi.

The two countries in 2008 signed a landmark deal giving India access to civilian nuclear technology, but it has been held up by US concerns over India’s strict laws on liability in the event of a nuclear accident.

While there were no immediate details on how the impasse had been broken, India has reportedly offered to set up an insurance pool to indemnify companies that build reactors in the country against liability in case of a nuclear accident.

“Today we achieved a breakthrough understanding on two issues that were holding up our ability to advance our civil nuclear cooperation and we are committed to moving toward full implementation,” said Obama.

“This is an important step that shows how we can work together to elevate our relationship.”

President Obama was greeted with an elaborate welcome at the country’s sprawling presidential palace, then he solemnly laid a wreath at a memorial honoring the father of India’s independence movement, Mahatma Gandhi.

The president arrived in New Delhi under hazy skies Sunday morning. Modi was waiting for Obama at the steps of Air Force One and the two men shared a hug, underscoring the warm relationship they have formed in the short time Modi has been in office. The president and prime minister were to spend much of Sunday holding talks on climate change, defense and economic ties. On Monday, Obama was to be the guest of honor at India’s Republic Day festivities, making him the first US president to attend the anniversary of the enactment of country’s democratic constitution.

“It is a great honor,” Obama said after reviewing an Indian honor guard formation at Rashtrapati Bhavan, the presidential palace. “We are so grateful for the extraordinary hospitality.”

Following their meetings, Obama and Modi were to issue statements and address reporters. The normally bustling streets of New Delhi were empty and the sidewalks cleared by Indian police as Obama’s motorcade sped from the palace to Gandhi’s memorial. A massive security presence was in place for Obama’s visit, with numerous roadblocks and armed men lining the streets.

Obama and Modi strolled briefly through the picturesque gardens of Hyderbad House where the leaders held their talks, walking past little ponds of lotus flowers, before sitting down and talking some more over tea. Both looked relaxed and smiled and laughed often as they chatted animatedly.

Earlier, Obama walked in his socks into a walled courtyard to lay a large white wreath at the site where Indian independence icon Mahatma Gandhi was cremated. He then shoveled dirt and poured a pitcher of water around a young tree planted in his honor at the memorial.

While much of Obama’s trip here was to be symbolic, the White House was seeking to make progress on numerous policy matters. Relations between the U.S. and India have been strained in recent years, but have been improving since Modi took office last year. As Obama and Modi opened their talks Sunday, the prime minister presented the president with a copy of 1950 telegram from the United States congratulating India on the adoption of its constitution.

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