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Meeting at the White House, the two leaders also discussed their civilian nuclear power agreement.
The new bill will ensure that buyers pay four times the market value for land earmarked for infrastructure projects.
Both sides have fixed a bilateral trade target of $100 billion by 2015.
China's foreign minister said his country would coordinate with India on Syria and the Iranian nuclear issue.
Indian oil minister is looking for cuts of up to $25 billion in the country's oil bill.
In India, at least 6.2 billion metadata of local and overseas phone communications was collected in just one month.
Late on Sunday, Kenyan forces launched a "major" offensive, police officials said, to end the two-day standoff.
Indian Finance Minister P. Chidambaram has set a target of 3.7 per cent CAD, or $70 billion, this fiscal.
Against a basket of currencies, the dollar lost 1.1 percent in under 24 hours to hit its lowest since February.
The BC-10 block off Brazil lies in ultra-deep water of 2,000 metres and began production in 2009.
