With US President Barack Obama still in the early days of his presidency, India is keeping a wary eye on policy changes that could irritate what has become a key strategic relationship.

Approaches to terrorism and the Kashmir dispute have been flagged as potential irritants by Indian officials in relations that saw a remarkable transformation during the Bush presidency.

The high point of ties between the world's largest and oldest democracies during the Bush years was the nuclear

deal that ended a decades-old freeze on India buying technology and power plants from the global market.

"When it came to India, (former president George) Bush was exceptional. Whenever any matter on India reached him, Bush overruled his team to address Indian concerns," said former Indian ambassador to Washington Naresh Chandra.

"I don’t think we can expect that kind of personal commitment (from Obama) though all his statements are in line with whatever objectives India holds dear. One has to see how the general is translated into specifics," he said.

New Delhi is keeping its fingers crossed ahead of an expected South Asia visit February by Richard Holbrooke, named special envoy to Pakistan and Afghanistan days after Obama's inauguration.

"Let's wait and see how things evolve," an Indian official said.

New Delhi was caught off-guard by Obama's plans for Pakistan and Afghanistan, where the Taliban is waging a bloody insurgency.

Pakistan's northwestern tribal belt has become a stronghold for hundreds of extremists who fled Afghanistan after the US-led invasion toppled the hardline Taliban regime in late 2001.