President George Bush's memorandum to the secretary of state expressed concerns over illegal opium poppy production in certain parts of India, such as West Bengal and areas along the border with China, but said the inclusion in the list did not adversely reflect the government's counter narcotics efforts or level of cooperation with the US.
'The government of India maintains a strong track record of regulating, monitoring, and curbing its licit opium production and distribution process. India has introduced robust, high-tech methods to control cultivation by licensed opium farmers,' the memorandum said.
"In this sense, India must continue to refine its control measures to guard against the continuing problem of diversion of illicit opium crops, grown for the production of pharmaceutical products, to illegal markets," it added.
The US was worried over the illicit opium poppy production in areas of West Bengal and Uttaranchal along the India-China border, which were hitherto considered free of the phenomenon.
Nevertheless, during the past year the country has destroyed substantial areas of illicit poppy cultivation, the report said, adding that America had a good working relationship with India to interdict the flow of narcotics being smuggled across the country's borders.
Other countries on the list were Afghanistan, Burma, Pakistan, Peru and Venezuela.