The US Secretary of State John Kerry has expressed regret over the way Indian diplomat Devyani Khobragade was treated when she was arrested in New York last week. In telephone call to National Security Advisor Shivshankar Menon, Mr.Kerry expressed the hope that the isolated episode will not harm the close and mutually respectful ties that the two countries share. White House Press Secretary Jay Carney told reporters in Washington that the US President Barack Obama has been briefed on the issue.

Ms Khobragade, Deputy Indian Consul General, was subjected to handcuffing and cavity searches during her detention for alleged violation of US visa law. Besides Kerry, the Under Deputy Secretary of State for Political Affairs Windy Sherman also spoke to Foreign Secretary Sujatha Singh on the arrest of the Indian diplomat. PTI's Washington correspondent Lalit K Jha says the US has sought to calm the escalating diplomatic stand-off with India.

Ms Khobragade has been shifted to India's Permanent Mission to the UN, which will enable her to get fuller diplomatic immunity.

New Delhi has strongly contested the allegations and protested against the arrest of the Indian diplomat.

Prime Minister Manmohan Singh has termed the arrest and ill treatment meted out to Ms. Devyani, as deplorable. He hoped that the United States will understand India's loud and clear message on the issue.

External Affairs Minister Salman Khurshid told Parliament that the government fully stands by the Ms Devyani and it will bring her back and restore her dignity.

The government had, on Tuesday, announced a number of steps to strip US diplomats and their families of privileges, including withdrawing all airport passes and stopping import clearances for the US Embassy. The US has also been asked to provide a list of all Indian nationals working with its Consulates, including domestic servants, by 23rd of this month.