India and US are in talks to help each other track submarines in the Indian Ocean.
The move could further tighten defense ties between New Delhi and Washington as China increases its undersea activities.
Both US and India are growing concerned at the ambition of the Chinese navy, which is taking an assertive stance in the South China Sea and is challenging India's dominance in the Indian Ocean.
New Delhi, changing its stance from decades-old reluctance to be drawn into America's embrace, recently agreed to open up its military bases to the United States in exchange for access to weapons technology to help it narrow the gap with China.
Two sides also said their navies will hold talks on anti-submarine warfare (ASW), an area of sensitive military technology.
India and the US, which already conduct joint naval exercises, both fly latest version of P-8 aircraft, making information sharing easier on highly sensitive submarine tracking activities.
P-8 is Washington's most advanced submarine hunting weapon, armed with sensors that can track and identify submarines by sonar and other ways.
An Indian naval spokesman refused to comment on proposed anti-submarine warfare cooperation with the United States.
But an Indian naval source was quoted in a report as saying that focus of the next set of joint exercises to take place in the northern Philippine Sea in June will be on anti-submarine warfare.