Indian stocks are trading at a record high in early trading in New Delhi, as the US government pushes ahead with a plan to open up the country to foreign investment.
The markets closed at around 9:00am (0300 GMT), with the Indian rupee rising 0.6 per cent to 66.27 per cent.
The government is also considering introducing a tax of up to 10 per cent on the profits of US firms in India.
India is one of the few countries in the world that has a strong currency and a vibrant stock market.
It is one the largest export markets for the US and is home to more than 20 per cent of the world’s millionaires.
The market rally is the latest indication that the US is willing to let Indian companies invest in the US.US President Donald Trump is expected to announce the new plan at a White House ceremony on Thursday.
While the plan has yet to be officially announced, the US has been pushing India to open its economy to foreign direct investment.
The plan would allow for the repatriation of capital from India, where about one-third of the US economy is based.
In a statement on Thursday, the Trump administration said the plan would create jobs and grow the economy by bringing millions of jobs to the United States.
“The American people are proud of our relationship with India and will continue to make the strongest economic and political investment in our common future,” the statement said.
It added that the plan was being developed to ensure that the United State has a robust economy, and would not be forced to leave a country to invest in a new one.
The US plans to invest $150 billion in India over the next five years.