The agreement was signed here between the National Institute of Biomedical Imaging and Bioengineering, a body of the National Institute of Health (NIH), the US, and the Department of Biotechnology under India's ministry of science and technology.
According to the ministry, the objective of the collaboration is "development of low-cost diagnostics and therapeutic medical technologies".
Speaking on the occasion, Minister for Science and Technology Kapil Sibal underlined the need of funds to pursue research and innovation in the public health sector.
NIH director Elias A. Zerhouni was also present when the pact was signed.
The major focus of the agreement will be on infectious diseases, trauma, maternal and child health and chronic diseases like diabetes, hypertension and cardiovascular diseases, the ministry said.
The collaboration will include organization of workshops and meetings to share experiences and scientific information.
It will facilitate direct links among centres of excellence and institutions in both countries. The agreement is expected to enable collaboration among scientists and engineers in centres of excellence in both countries to conduct research, research training and technology development.