Carter, 60, will be the 25th US Secretary of Defence, replacing Chuck Hagel who quit from the post in November last amid reports of differences with President Barack Obama.
Obama lauded Carter's election to the top post yesterday even as he hoped that the new secretary will work with the Congress and find a "more responsible" approach to defence spendings.
"With his decades of experience, Ash will help keep our military strong as we continue the fight against terrorist networks, modernize our alliances, and invest in new capabilities to keep our armed forces prepared for long-term threats," Obama said in a statement.
"We have the strongest military in the history of the world, and with Secretary Carter at the Pentagon and our troops serving bravely around the world, we're going to keep it that way," Obama said.
Carter is known for the path breaking India-US Defence Trade and Technology Initiative (DTTI) which resulted in the two countries agreeing on co-production and co-development of four high-tech defence items.