India selects European for for an $11 billion fighter jet contract, rejects US firms

India has rejected US firms for an $11 billion fighter jet contract , shortlisting European firms instead, in a move that could sour its relationship with the United States while broadening its strategic ties with other regions.

The rejection comes despite lobbying from President Barack Obama during a high-profile visit to India five months ago, and coincides with the unexpected resignation of the U.S. ambassador to India, who cited "personal, professional, and family considerations" in a statement on Thursday.

The U.S. embassy in India declined to comment if Timothy Roemer's resignation was linked to the jet decision, with a spokeswoman referring queries to a statement on their website.

Roemer said in a separate statement on India's decision: "We are...deeply disappointed by this news. We look forward to continuing to grow and develop our defense partnership with India."

Lockheed Martin's F-16 and Boeing's F/A-18 Super Hornet did not meet the Indian Air Force's technical requirements, a defence ministry source told Reuters.

"The Americans will be very unhappy and people who have been backing the contract will say India has not sufficiently taken into account the political relationship with the U.S.," said Kanwal Sibal, a former Indian foreign secretary.

"That is a political setback for relations."

Relations between the two democracies have been on the rise after the end of the Cold war, when India was seen as closer to the Soviet Union.

The two nations signed a landmark civil nuclear cooperation deal in 2007 and Obama last year promised to back India's bid for a permanent place on the U.N. Security Council while on his visit with more than 200 business executives.

In his three-day trip -- the longest stay in any foreign country by Obama -- the U.S. leader also announced $10 billion in business deals.

But suspicions remain. India has strived to broad-base its diplomatic relationships, working along with China, Russia and other emerging powers to avoid being perceived as part of the U.S. camp.

India has also been unwilling to commit to greater defence ties, including joint military exercises and patrols.

Obama, meanwhile, has been walking a diplomatic tightrope, on the one hand trying to boost diplomatic and business ties with India while on the other ensuring relations with Pakistan and China, nations often at loggerheads with India, stay stable.