Murali plz help - question related to US passport Vs Indian passport

[b2seeker]

Hi Murali,

My wife delivered a baby recently in the US and I want to know which option is better from below.
1. I get a US passport for the daughter and then get a PIO card for her.
2. I get a US passport for the her and then get a visa to India.
3. I just get an Indian passport and do NOT get US passport at all for now.

Now, i know the first two options are the standard ways to do it but I am not sure about the third option if it is possible or not. Moreover, I need to travel out of USA so does she require a US passport for that purpose. Or is it ok to just have an Indian passport and still travel? Is that possible at all? Some people say that since she has dual citizenship, she can travel out of USA without a US passport and just with the Indian passport and can get her US passport later.

I dont want to forfeit her US citizenship so I definitely want to apply for US passport sooner or later but I was thinking that I will work on the US passport issue after I come back to USA. What is your suggestion? Please reply urgently.

thanks
b2seeker (now US passport seeker)