He made the comments while talking to reporters in New Delhi on Saturday after concluding bilateral talks with Indian Defence Minister Rajnath Singh, RIA Novosti reported.
However, Austin underlined that American sanctions against India for signing a $5.43-billion deal with Moscow for S-400s were so far not on the table.
"There has been no delivery of the S-400 system to trigger sanctions," he said.
The first batch of air missile defence system is expected to arrive in India by the end of this year.
Austin also hinted that Washington is trying to push India in line with US foreign policy, while he also questioned the persecution of Muslims in India.
India invited America to take advantage of its liberalised foreign direct investment (FDI) policies in the defence sector.
"We both agreed that there are opportunities for collaboration in defence industry," Indian Defence Minister Rajnath Singh said in a statement after meeting Austin.
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