India and the United States have signed an agreement on the nuclear fuel reprocessing arrangements under the India-US civil nuclear deal completing another key step in implementing the landmark accord.

The agreement signed by Indian ambassador to the US Meera Shankar and the US Secretary of State at the State Department Friday will enable reprocessing by India of US-obligated nuclear material at a new national reprocessing facility.

The new facility dedicated to the reprocessing of safeguarded nuclear material would be established by India under International Atomic Energy Agency safeguards.

In turn, it will facilitate participation by US firms in India's expanding civil nuclear energy sector.