New Delhi , India ( CNN ) -- U.S. President Barack Obama started his second day in India on a lighter note : pulling a few dance moves and celebrating a major religious festival with local students . Obama and first lady Michelle Obama spent Sunday morning at a local school , where students were celebrating Diwali . Youngsters performed dances in colorful saris to mark the festival of lights . The president bobbed his head to the music and clapped . Young girls danced with baskets on their heads as the room erupted in cheers . At one point , students pulled the first lady on stage and taught her how to twirl . `` Notice they did n't ask me , '' the president said . Students later extended the offer to the president , who joined them and towered over the youngsters as he danced . Obama also visited students at Holy Name High School , where students in school uniforms explained their projects to the president . One girl described her `` eco-friendly village '' with a large windmill . `` Did you guys get that -- a tree a day keeps global warming away , '' Obama told journalists . Obama also attended an agriculture exposition and took part in a town hall-style meeting with students at St. Xavier 's College in Mumbai . He and the first lady then visited Humayun 's Tomb , a magnificent architectural precursor to the Taj Mahal , before heading to New Delhi for a private dinner Sunday night with Indian Prime Minister Manmohan Singh . At the meeting with the students , Obama faced some difficult questions including his thoughts about jihad and why the United States does n't consider Pakistan -- India 's neighbor and rival -- a terrorist state . The president said it was necessary to isolate those who distort religion as a means for war , and said young people have a role in rejecting violence as a way to mediate differences . On Pakistan , Obama called it a country of enormous potential that had extremist elements . He acknowledged that progress against militants there was `` not as quick as we 'd like , '' particularly in the difficult terrain of the northwest territories along the border with Afghanistan . Obama also said that India has the biggest stake in its neighbor 's success , and that he hoped over time that the two nations develop further trust and cooperation . `` The United States stands to be a partner in that process , but ca n't impose that , '' Obama said . The relatively light agenda on the second day of Obama 's 10-day , four-nation Asian trip followed the president 's unveiling Saturday of about $ 10 billion in contracts for U.S. exports to India . `` The United States sees Asia , and especially India , as a market of the future , '' Obama said at a meeting with business leaders from both countries . `` For America , this is a jobs strategy . '' Promoting broader trade relations with India is a delicate balancing act for Obama , given American frustration with the outsourcing of jobs to call centers in the country . But Obama said the notion of Indian outsourcing being a net drain on the U.S. economy is part of a `` caricature of India as a land of call centers and back offices that cost American jobs . '' Obama 's three-day visit to India , Asia 's third largest economy and one of the world 's few growth markets , also will include bilateral talks with Singh and an address to the the nation 's parliament . After India , Obama will travel to Indonesia , then on to the G-20 meeting in South Korea and APEC ( Asia-Pacific Economic Cooperation ) summit in Japan .
NEW : The Obamas tour Humayun 's Tomb . The president celebrates Diwali with local students . Diwali is a festival of lights . Hide Caption 4 of 11 Photos