"I arrived here in June shortly after the new government was formed. You know that President (Barack) Obama called up Prime Minister elect even before he was sworn in to congratulate him and extend an invitation and I think that set the tone," Stephens, US Ambassador Charge d'Affaires ad interim to India told reporters here.
The state department had in 2005 revoked a visa that Modi had for travelling to the US on the ground of alleged human rights violations after the 2002 Gujarat riots.
Stephens said a string of high-profile visits by the US leaders to India during which they met Modi were "very positive".
"My life (here) is dominated by visits. First one was of senator John McCain, then John Kerry (Secretary of State), Penny Pritzker (Secretary of Commerce) and Chuck Hagel (Secretary of Defence).
"So we are placed well and signals from the (Indian) government are very clear. Not only at the prime ministerial level but at the level of the government also...A great priority has been given to the India-US relationship which President Obama has called a defining relationship," Stephens said.
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