NEW DELHI, Aug 4: The United States enjoys the best of bilateral relations with India but it has decided to support the candidature of Japan for the permanent membership of the United Nations Security Council, US Assistant Secretary of State for South and Central Asian Affairs Richard Boucher said in Kolkata on Friday.

“Though the US fully acknowledges the true potential of India not only as the largest democracy in the world but also as the emerging global economic power house, it has decided to vouch for Japan for becoming the sixth permanent member of the UN Security Council,” he told an interactive meeting with Indian business captains.

Quoting Mr Boucher on what will be seen here as a major setback for New Delhi’s quest of joining the high diplomatic table, the United News of India said he was otherwise applauded in India’s communist bastion where he explored closer business cooperation with his country.

His meeting with West Bengal’s chapter of Indian Chamber of Commerce(ICC) made Mr Boucher the highest ranking US official to visit communist-ruled Kolkata this year.

He said it was heartening to note that barring China, India was experiencing the highest annual growth in GDP and was poised to cross the eight per cent mark this fiscal.

“But for the US government, Japan was found to be the most suitable candidate for the post for various other reasons,” UNI quoted him as saying.

Mr Boucher refused to spell out the rationale behind his government’s decision to back Japan instead of India for the important position. He said since it was a policy decision he had nothing more to add on to the issue.