The measure reverses about three decades of US policy to restrict access to nuclear technology.
Congressmen voted 359-68 in favor of the deal, but the Senate has to approve
the legislation before President George W Bush can sign it into law.
Under the deal, the United States will aid the development of civil nuclear power in India in return for New Delhi placing its civil nuclear facilities under International Atomic Energy Agency inspections.
Supporters greet the deal as a sign of a geopolitical re-alliance following the Cold War, one which allows India to jump-start its quest for alternative energy, as its economy booms.
However, detractors say that they are not convinced that India can be trusted to safeguard critical atomic secrets, or to refrain from using atomic material to gain an edge over neighbouring rival power, Pakistan.
The United States has withheld its civilian nuclear know-how from India since 1974, when it conducted its first nuclear test.
India tested nuclear weapons in 1974 and 1998 and, as a result, is currently banned by the United States and other major powers from buying fuel for atomic reactors and other related equipment.
The bill emerged from a deal forged last year between US President George W. Bush and Indian Prime Minister Manmohan Singh and a vote on the measure is likely in the House of Representatives late today.
Democratic and Republican leaders in both houses of Congress have expressed strong support for the bill.
But some lawmakers have expressed doubts about extending civil nuclear technology to India, which is not a member of the nuclear Non-Proliferation Treaty, without first putting the most stringent of safeguards in place.
"We must continue to strengthen our relationship with India while still protecting our security interests at home and abroad," Democrat Ike Skelton said.
"Congress must exert strong oversight over any nuclear agreement between our two nations to ensure that we do not enable India to increase its nuclear weapons arsenal."
"We are deeply concerned that this proposal, in its current form, will blow a hole in the nuclear Non-Proliferation Treaty, allow India to greatly increase the size of its nuclear arsenal, and potentially spark a nuclear arms race in Asia," House Democrat Ed Markey told a press conference Tuesday.
Congressman Markey said the bill would allow India to dramatically increase its production of nuclear weapons. Critics also fear the bill could fast-track the nuclear arms race in Asia.