"It is entirely indicative of the robust nature and health of the relationship, and very good personal ties and chemistry between our two leaders," Atul Keshap, Deputy Assistant Secretary of State for South Asia, told reporters.
India has invited Obama to be the chief guest at the 2015 Republic Day celebrations, an invitation which has been accepted by the American leader.
This is for the first time that a US President would be attending the Republic Day ceremony. Obama would also be the first American President to visit India twice.
Under Secretary of State for Civilian Security, Democracy and Human Right, Sarah Swell, said the visit is a "logical combination" of the way in which the relationship between Obama and Modi has developed.
"It's very exciting to see that trajectory, and I think this is the logical next step," she said.
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