David Cameron has promised to "respond to any request for information" on corruption allegations over India's procurement of helicopters from the Anglo-Italian company AugustaWestland.
India has suspended payments under the terms of the £480m contract, following arrests at AugustaWestland and its parent firm Finmeccanica.
Mr Cameron, visiting India, stressed Finmeccanica was an "Italian company".
Indian counterpart Manmohan Singh raised "serious concerns".
Mr Cameron held talks with Mr Singh in Delhi on the second day of his three-day trade visit to India.
AugustaWestland signed the deal to supply 12 AW101 helicopters to the Indian air force in 2010, since when there have been allegations of bribery, which are being investigated by the Italian authorities.
'Integrity'Finmeccanica's chairman and chief executive Giuseppe Orsi and AgustaWestland chief executive Bruno Spagnolini were arrested last week on corruption and tax fraud charges.
At a press conference after his meeting with Mr Cameron, Mr Singh said he had "conveyed to the prime minister our very serious concerns regarding allegations about unethical means used in securing the 2010 contract for AgustaWestland helicopters.
"I told him that we have sought an explanation from the company by 22 February to examine if the contractual conditions on unethical practices and the integrity pact have been violated.
"I have sought full assistance from the UK in this case. Prime Minister David Cameron has assured me of the co-operation of his government in the investigation."
Mr Cameron said: "In terms of AgustaWestland, we will respond to any request for information. I am glad that the Italian authorities are looking into this issue in detail, as Finmeccanica is an Italian company."
AugustaWestland employs more than 3,000 people in Yeovil, Somerset.
'Red tape'During his visit Mr Cameron is also set to promise more co-operation between Britain and India in combating cyber attacks.
He will announce police training exchanges and more research into online security.
Mr Cameron, who believes the UK has a competitive and technological advantage from its expertise in tackling attacks, said it was in the national interest to share that knowledge with India.
Mr Cameron came to Delhi from India's financial capital, Mumbai, where he made a pitch to win new business deals for British companies on the first day of his visit.
On Monday he urged the Indian government to cut "regulation and red tape" in a bid to encourage more trade and investment involving UK businesses.
Mr Cameron said India could be "a difficult country to do business in" but insisted he wanted the UK to become its economic "partner of choice".
He will also meet Indian President Pranab Mukherjee during his trip.
His delegation includes BAE Systems, Rolls-Royce, London Underground and the English Premier League.
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