NEW DELHI: After describing India and the United States as "brothers in the cause of human liberty," U.S. President George W. Bush on Friday launched a sharp attack on Iran where, he claimed, a small clerical elite was denying basic liberties, sponsoring terrorism and pursuing nuclear weapons.

Addressing an invited audience at the Purana Qila here, Mr. Bush had little hesitation attacking Iran, with which, Prime Minister Manmohan Singh has repeatedly said, India enjoyed "civilisational" ties. He said the U.S. and India were "closer than ever before" and this partnership had the "power to transform the world."

A central theme running through his speech was that India, a great democracy, must stand with the U.S. in promoting "democracy" and "freedom" around the world. India's leadership was needed in a world "hungry for democracy," Mr. Bush said, just before leaving for Pakistan.

"Men and women from North Korea to Burma [Myanmar], to Syria, to Zimbabwe, to Cuba, yearn for their liberty ... Our nations must not pretend that people of these countries prefer their own enslavement. We must stand with reformers and dissidents ... " Mr. Bush said.

India and Pakistan, he claimed, were better off with the U.S. having closer relations with the two countries. "I will meet with President [Pervez] Musharraf to discuss Pakistan's vital cooperation in the war on terror ... I believe that a prosperous, democratic Pakistan would be a steadfast partner for America and a peaceful neighbour for India and a force for freedom and moderation in the Arab world."

Defending the understanding on civilian nuclear cooperation with India, Mr. Bush said this would strengthen the security and economy of both countries while reducing the risk of proliferation.

Freedom was not an American or Indian value — it was a universal value. Appreciating the assistance India provided to a new democracy such as Afghanistan, Mr. Bush asked it to "work directly" with countries where democracy was just beginning to take shape.

Cap on foreign investment

Urging India to lift the cap on foreign investment, Mr. Bush felt that the rules governing business in the country needed more transparency. India's leadership was needed to open markets across the world. He hoped that the Doha round of trade talks would be completed by the year-end.

Referring to the U.S. food assistance to India in the 1960s, the President said Washington would now help New Delhi achieve a second green revolution. The two countries had agreed on a $100- million knowledge initiative in agriculture.

Taking a strong line against terrorism, Mr. Bush said terrorists had misjudged countries such as the U.S. and India. "We love our freedom and we will fight to keep it." India and the U.S. were allies in the war against terror.

Thanking the Indian Navy for escorting U.S. ships through the Straits of Malacca after the September 11, 2001 terrorist attacks, he applauded the growing military cooperation between the countries. "We will win this war [against terrorism] together."

Appreciating India for establishing the rule of law, Mr. Bush said: "If justice is the goal, democracy is the way."

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