India hailed the election of Barack Obama as the next U.S. president on Wednesday, saying his “extraordinary journey” to the White House would inspire people not only in his country but around the world.

The two countries, once on opposing sides of the Cold War divide, have come close during the last few years and signed a landmark bilateral civilian nuclear deal personally supported by outgoing Republican President George W. Bush.

New Delhi and Washington have expanded defence cooperation and strengthened business ties, an alliance which India’s traditional allies from Russia to Iran have watched gingerly.

“Your extraordinary journey to the White House will inspire people not only in your country but also around the world,” India’s Prime Minister Manmohan Singh said in a congratulatory message to Obama.

“I look forward to working with you to realise the enormous potential for cooperation that exists between India and the United States.”

India’s growing ties with the United States have met with political opposition at home, with the communists withdrawing support to Singh’s government in July over the bilateral nuclear deal they said was against the interest of India.

But analysts expect this cooperation to only expand further as the world tries to fight rising militant violence and a financial crisis singeing almost every major economy.

Many experts say Obama will bring both opportunities and challenges for India - from outsourcing issues to global militant violence.

“So far as terrorism is concerned Obama’s focus is the Pakistan-Afghanistan border areas which is good for India,” said Shashank, India’s former foreign secretary. He saw a greater role for India in drawing up security strategies for the region.

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