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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Watchdog's fate in Senate key to financial reform 18 Jan 2010 FBI broke law in phone searches: report 12:28am EST A China that says "no" casts economic shadows 18 Jan 2010 Turkey blocking 3,700 websites, reform needed: OSCE 18 Jan 2010 Some 390 tons of U.S. ground beef recalled 18 Jan 2010 Watchdog's fate in Senate key to financial reform 18 Jan 2010 FBI broke law in phone searches: report 12:28am EST Apple to host event January 27, tablet expected 18 Jan 2010 Some 390 tons of U.S. ground beef recalled 18 Jan 2010 Turkey blocking 3,700 websites, reform needed: OSCE 18 Jan 2010 Gates praises India restraint after Mumbai attacks Phil Stewart ABOARD A U.S. MILITARY AIRCRAFT Mon Jan 18, 2010 7:15pm EST Related News Americans held in Pakistan wanted to join "jihad" Thu, Dec 10 2009 India plans to try Chicago man for Mumbai attacks Tue, Dec 8 2009 U.S. charges Chicago man in 2008 Mumbai attack Mon, Dec 7 2009 Obama aides pressed on Afghan graft, al Qaeda Thu, Dec 3 2009 One year after, India remembers Mumbai attacks Thu, Nov 26 2009 ABOARD A U.S. MILITARY AIRCRAFT (Reuters) - U.S. Defense Secretary Robert Gates, flying to New Delhi, praised India's restraint and statesmanship following the 2008 Mumbai attacks and remarked at how both India and Pakistan have kept tensions at a "manageable level." World Relations between the South Asian neighbors have been strained since India suspended a peace process with Pakistan after the assault on Mumbai by Pakistan-based militants. India sees Islamabad as unwilling to go after the insurgents responsible for the attacks, which killed 166 people. "The bombing in Mumbai was a really terrible event and frankly I believe that the Indians responded subsequently with a great deal of restraint and have conducted themselves in a very statesmen-like manner since that attack," Gates told reporters on his flight to India for a Jan 19-21 visit. "Obviously we would hope that there wouldn't be any more attacks. But I think that even within the framework of that attack and the suspicions that it created, the two sides have managed to keep the tensions between them at a manageable level." Last month, Gates told the U.S. Senate he believed al Qaeda wanted to provoke a conflict between India and Pakistan in order to destabilize Pakistan. He said it was providing Lashkar-e-Taiba militants -- the group blamed for the Mumbai killings -- with targeting information to help the group plot attacks in India. Gates said the United States would be happy to work to help improve India-Pakistan relations, if asked, but added: "I think it's clear that both sides prefer to deal with this bilaterally and that others not be involved." In another sign of tensions between countries which have fought three wars since 1947, Pakistani and Indian forces exchanged fire across their border at the weekend, a Pakistani spokesman said on Monday. Last week, Indian officials said one of their soldiers was killed in firing across the Line of Control, which separates the two sides in the disputed Kashmir region. DEFENSE SALES Gates' visit to India includes talks with Prime Minister Manmohan Singh and comes at a time when India-U.S. relations are at their best in decades. One area closely watched by investors is India's growing appetite for arms purchases. Currently the world's 10th largest defense spender, India is looking to dole out more than $50 billion over the next five years to modernize its armed forces. In an editorial for the Times of India newspaper, Gates applauded deepening military ties between both countries and "significant strides in developing a stable defense trade." "The U.S. defense industry produces the best products in the world, and using the same platforms also enhances our militaries' ability to interact and communicate more effectively," he wrote. U.S. aircraft manufacturer Boeing Co said this month the Indian Air Force was interested in acquiring 10 C-17 aircraft, in a deal Indian defense ministry officials say is potentially worth more than $2 billion. Last August, India started field trials to buy 126 multi-role fighter jets. Gates noted the need to finalize bilateral agreements, including on technology transfer, to deepen trade relations. "Not getting these agreements signed is an obstacle to Indian access to the very highest level of technology which they're interested in," Gates said. "And so we will be pursuing those agreements." (Editing by Philip Barbara) World More from Reuters Kraft, Cadbury close to $19 billion friendly deal: sources CHICAGO/LONDON (Reuters) - U.S.-based Kraft Foods Inc and Britain's Cadbury Plc are close to sealing a friendly deal to create the world's largest confectionery group for up to 11.7 billion pounds ($19 billion), sources familiar with the matter said on Monday. China says Google, foreign firms must respect laws Massachusetts votes in crucial election for Obama FBI broke law in phone searches: report Obama to seek $1.35 billion for school reform in next budget JAL board decides to file for bankruptcy: report » More Top News Analysis: Is China becoming arrogant? 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