Expressing confidence that the ongoing dialogue between India and Pakistan was moving forward, Prime Minister Manmohan Singh said on Tuesday there was 'certainly' a climate of reconciliation.

"We are moving forward on dialogue with Pakistan and there certainly is a climate of reconciliation," he told economic and corporate leaders at a round-table organised by the Economist magazine.

"In our external relations, we are at a stage where our relations with our immediate and larger neighbourhood and with all major countries of the world have improved significantly," he said.

On the nuclear energy agreement with US, Dr Singh said this would throw open opportunities for growth in the sector - "The agreement with the US on nuclear energy will open up immense opportunities for growth of nuclear energy."

On China, he said India was 'trying seriously' to resolve the border problem. He said his government is hopeful that 'we can build a region of peace and friendship in South Asia and we will make sustained efforts to achieve this goal'.