India has been seeking entry into the 48-member elite nuclear club, which controls nuclear trade, but China has repeatedly stonewalled its bid.
Juster acknowledged that the US and India faced challenging and complicated issues related to the transfer of sensitive US technology with both military and conventional applications.
"India sought increased access to this technology, while the US wanted to ensure that any transfers would be used solely by the designated recipients for the agreed-upon purposes.
"This required a sophisticated system of export controls, which India, candidly, did not have at the time," Juster said in his first policy speech since taking over as the US ambassador to India.
The initial interactions on the subject were "quite formal and somewhat strained due to the wide gulf" in the positions of the two nations, Juster acknowledged.
He said the US had moved from a restrictive policy on the export of dual-use items to India to a much more "liberal one".
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