Now China is one of the superpower in economy and Miltary wise and threat to US. making a deal like this will bring US and India closer and this is just a sign(win-win situation),US can make another super power next to china border i.e India where china will put its all effort to compete with india in near future which will make US to concentrate on its technology and miltary advancement in 90's US is invested havily in china Manufactruing all kinds of brands and now totally depeneded on it, Now US wants to diversified its investment portfolio to other countries mainly India becuase of technology resources and Cheap labours.