India and the US Wednesday signed a new set of rules of engagement to give a further boost to bilateral investment and trade, which has more than doubled over the last five years.

Called the 'Framework for Cooperation on Trade and Investment', the pact to facilitate trade and investment flows between the two countries was signed by India's Commerce and Industry Minister Anand Sharma and US Trade Representative (USTR) Ron Kirk.

In the first significant step taken under the Framework, Sharma and Kirk also announced the launch of an initiative called 'Integrating US and Indian Small Businesses into the Global Supply Chain'.

This is intended to expand trade and job-creating opportunities for US and Indian companies, big and small, and will directly support both Prime Minister Manmohan Singh's recently introduced budget objectives and President Barack Obama's National Export Initiative, officials said.

By signing this accord 'we want to create the right environment to ensure that the relationship brings maximum benefit to the maximum number of people. We will do so by promoting inclusive growth,' Sharma said.

'We also intend to use this Framework to encourage the development and deployment of clean energy and environmental technologies as well as to support India's infrastructure growth,' he said.

Said Kirk: 'There is almost limitless potential for growth in trade between our two countries, and that can contribute to economic recovery and job creation in the United States and continued economic growth in India.'

'We can realise that potential by working together toward the goals set forth in the Framework agreement,' he said.

'Closer collaboration with entrepreneurs and private sector leaders in both our countries will enhance our work.'