"I am very confident the US and India can devise a plan that will dramatically change the way we produce, consume and conserve energy and in the process spark an explosion of new investment and millions of jobs," she said on Sunday after meeting Union minister of state for environment and forests Jairam Ramesh at the ITC Green Centre here shortly after her arrival from Mumbai.

The Indian government, however, categorically refused to be pushed by the US on putting a cap on emissions, and said it could not accept any "legally-binding" reductions. India pledged, however, that its carbon footprint would never exceed that of the developed nations.

At a joint press conference with Ms Clinton, Mr Ramesh said New Delhi was "simply not in a position" to accept any legally-binding emission reductions.

Ms Clinton, who was accompanied by US special climate envoy Todd Stern, appreciated the concerns of countries like India, and said the US "does not and will not do anything" that would limit India’s development.

Ms Clinton’s effusive advocacy of climate change solutions was only matched by her reluctance to call Pakistan’s bluff on the issue of terrorism directed against India. Giving Islamabad the benefit of doubt, she said "there is a commitment to fight terrorism that permeates the entire government (of Pakistan)" and hoped that the perpetrators of the terrorist attacks in Mumbai will "meet their day of reckoning."

On Monday, Ms Clinton is due to meet Prime Minister Manmohan Singh and hold talks with external affairs minister S.M. Krishna here, before she leaves for Bangkok on Tuesday morning. She will also call on Congress president Sonia Gandhi and Leader of the Opposition L.K. Advani on Monday.

She said she had "seen an evolving commitment, not only by the Pakistani government but also Pakistani people ... and a recognition that terrorism within a country is a threat to that country." The US, she said, was talking to Pakistan at all levels — government, military, civilian and intelligence — on the fight against terrorism. "We are watching it and we hope they will make progress against what is a syndicate of terrorism — Al Qaeda, Taliban and many other terror organisations are connected in a way that is deeply troubling to us, and I know to India. But it is also now troubling Pakistan," she added.

On climate change, Ms Clinton argued it was a "compatible goal" along with economic growth and that there was a way to eradicate poverty and develop sustainably that will lower significantly the carbon footprint. "We want to show that democracies deliver," she said, on why in her view India must also lead the way in ensuring a successful outcome of the December 7-18 climate talks in Copenhagen.

Responding to Ms Clinton, Mr Jairam Ramesh explained why India was in no position to undertake "legally-binding" cuts in greenhouse gas emissions.

"Even with eight to nine per cent GDP growth every year for the next decade or two, our per capita emissions will be well below that of developed country averages. There is simply no case for the pressure that we, who have among the lowest emissions per capita, face to actually reduce emissions. As if this pressure was not enough, we also face the threat of carbon tariffs on our exports to countries such as yours."

Mr Ramesh clarified that India was neither running away from mitigation nor was it oblivious of its responsibilities. "It is possible for us to have an international agreement that recognises common but differentiated responsibilities, and which also involves credible actions by countries like India and China to mitigate the greenhouse has emissions in future," he said.

The US wants India to agree to limit its carbon emissions ahead of the signing of a new UN climate treaty in Copenhagen in December, where world leaders will gather to negotiate a successor to the 1997 Kyoto Protocol, which expires in 2012.

Earlier, touring the ITC Green Centre, which is carbon positive, water positive and solid waste recycling positive, Ms Clinton likened the building to monuments like the Taj Mahal and India Gate. "We know that there are wonderful monuments throughout India from the India Gate to the Taj Mahal. The ITC Green Building may not be a regular stop on the tourist calendar, but it is a monument in its own right," she said.