In his toast the President jokingly acknowledged his wife's dance moves, which have dominated the press during their three-day visit to India.
The First Lady wore her hair down and an Indian-inspired top with her glittering belt and floor-length skirt
Michelle Obama offered a toast to India's President President Pratibha Patil during the state dinner, held in a tent with over 100 guests
Obama said his wife will always be a better dancer than he is and that on their trip to India 'she has turned into a better dancer' thanks to the Bollywood routine she picked up.
The President also acknowledged India's many 'strong woman leaders.'
The Obamas took off their shoes to lay a wreath at Raj Ghat, the Mahatma Gandhi memorial in New Delh, earlier in the day
The First Lady wore her hair up and recycled the belt she wore on Saturday as she tossed flowers at the Gandhi memorial
Mrs Obama talked to schoolgirls about how she likes to stay strong with exercise and how her husband apologises first when the pair get into a fight
The First Lady tried on a beaded necklace at the National Crafts Museum and ended up buying an armful of bracelets, perhaps for daughters Sasha and Malia, who did not come along on the trip to Asia
Manpreet followed up with another tough question, asking whether Mrs Obama or the president had to apologise first after they have an argument.'She said of course the president makes up first,' the girl said, drawing giggles from the rest of the group. The girls said they were surprised by the answer and would go home and tell their mothers.
Mrs Obama greeted the 10 to 14-year-olds under a peepal tree, a tree of worship considered the personification of Buddha in India.
With the museum director, the US ambassador's wife and a translator, Mrs Obama and the girls toured the National Crafts Museum's terra-cotta animal statues, bronzed Hindu gods, replicated village huts and painted scrolls of mythical kings.
Most of the children are the first girls in their families to study.
The low-key school trip was the first lady's last solo outing in India before she and her husband, President Barack Obama, fly to Indonesia tomorrow.
Even in her kitten heels the First Lady towered over her hosts. Here her husband shakes hands with Indian President Pratibha Patil as Indian Prime Minister Manmonhan Singh and wife Gurusharan Kaur look on at a welcoming ceremony
While wife Michelle shopped and met with schoolchildren, President Obama spoke at Indian Parliament
The girls, looking smart in braids, ribbons and school uniforms, pointed out elephants and tigers in ancient tapestries and listened intently to the museum director's descriptions of blue-faced Krishna dolls and a wood-carved four-armed statue of Durga, the Mother Goddess and destroyer of evil.Mrs Obama smiled at a giant statue and, pumping both hands in the air, told the girls 'women and power'.
While the First Lady was trumpeting girl power, President Obama was with the Indian Prime Minister. He pledged to work more closely with India to combat global terrorism and offered to help India and Pakistan resolve their long-standing dispute over Kashmir, without intervening directly.
Speaking at a news conference alongside Indian Prime Minister Manmoham Singh, Mr Obama said that, while both India and Pakistan have an interest in reducing tensions in the region, the US 'cannot impose a solution to these problems'.
'We are happy to play any role the parties think is appropriate,' he said.
The conflict over Kashmir, a Muslim-majority Himalayan region where rebels have sought independence from India or incorporation with Pakistan, has been the main source of friction between the nuclear-armed neighbours since they won independence from Britain in 1947.
Pakistan has frequently sought outside intervention to resolve it but India vehemently opposes such involvement, and the United States has traditionally stayed above the fray. Mr Obama declined to veer from that stance.
Mr Singh said that, while he believed a strong, moderate Pakistan was in the interests of India and the wider region, India could not engage in talks as long as Pakistan's 'terror machine is as active as ever before'. However, he deflected a reporter's question about whether he would call Pakistan a terrorist state.
President Barack Obama and glamourous First Lady Michelle Obama greet India's Vice President Mohammad Ansari as they stand next to India's President Prathiba Patil and her husband
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