The atmosphere was "friendly" but smiles were thin

Their foreign ministers met in the Indian capital, Delhi, "in a friendly, cordial and affable and constructive atmosphere," an Indian spokesman said.

The two-day talks are also due to cover everything from transport to culture.

It is the first official meeting at ministerial level for three years between South Asia's nuclear powers.

Indian External Affairs Minister Natwar Singh received his Pakistani counterpart, Khurshid Mahmud Kasuri, at Delhi's colonial-era mansion known as Hyderabad House.

The ministers are said to have reiterated their commitment to take the peace process forward.

They are due to complete their meeting on Monday with a news conference, at which any significant differences between them are likely to emerge, correspondents say.

Sharp words

Neither government expects a significant breakthrough, the BBC's Sanjeev Srivastava reports from Delhi.

Those who resort to militancy should eschew the path of violence, and stop the killing of innocent citizens Indian PM Manmohan Singh

But both appear keen to avoid any dramatic breakdown, he says.

There were sharp exchanges on the eve of the meeting as Pakistan called for the focus to be put on Kashmir, while India sought to broaden the agenda.

"A resolution of the Kashmir issue alone will guarantee peace and security in South Asia," said Mr Kasuri on the eve of the meeting.

Indian foreign ministry spokesman Navtej Sarna responded that the remark "violated Pakistan's own call for a rhetoric restraint regime".

However, India's national security advisor, JN Dixit, told the BBC that the exchange should be seen as tactical manoeuvring by both sides to emphasise their respective priorities.

Few details

Sunday's meeting was preceded by talks in Delhi between Indian Foreign Secretary Shyam Saran and his Pakistani counterpart, Riaz Khokhar.

A Kashmir bus link has been planned

A joint statement issued by South Asia's two nuclear powers stressed that those talks had been "productive and had taken place in a cordial and constructive atmosphere".

Details of the latest plans were not immediately available.

However, India is reported to be exploring the possibility of easing restrictions along the Line of Control (LoC), which has divided Indian and Pakistani-administered Kashmir since 1949.

That could include allowing transport and other links between people living on either side of the divide.

Talks offer to rebels

Indian Prime Minister Manmohan Singh has offered to hold unconditional talks with Kashmiri rebel groups, if they agree to end their violence.

"All groups, and I repeat all groups, whether they are in Jammu and Kashmir or in the north-east, they are welcome to talk to us," he said.

"We are not laying down any pre-conditions, but expect that those who resort to militancy should eschew the path of violence, and stop the killing of innocent citizens."

He also backed the "normalisation of the relationship" with Pakistan.

In the past, India has repeatedly accused Pakistan of failing to do enough to prevent the infiltration of separatist rebels into Indian-administered Kashmir.

Pakistan has said India is unwilling to engage in serious dialogue.