In an address to India's parliament at the end of a three-day visit, Mr Obama lavishly praised India's development.
His remarks will delight India, which has been lobbying for a seat at the UN's top table for years.
Analysts say it does not mean India will get a permanent seat immediately; the unspecified UN reforms Mr Obama mentioned could take years.
India's long-term rival Pakistan issued a quick response opposing the move, saying the US should not be swayed by "power politics".
The US president is next due to visit Indonesia, South Korea and Japan on a 10-day Asian tour designed to boost US exports.
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