Downplaying Pakistan's assertion that Kashmir was the core issue between the two countries, India on Wednesday said it was not perturbed by it and was optimistic about progress in the bilateral composite dialogue.

"On several occasions, Pakistani authorities have declared that Kashmir is a core issue. To me, there is nothing new in it. At the same time, we are having talks," External Affairs Minister Pranab Mukherjee told reporters at the end of the 14th SAARC Summit.

Mukherjee said the fourth round of composite dialogue has started and confidence-building measures, including people-to-people interaction along the Line-of-Control in Jammu and Kashmir were underway and the ceasefire has been in place for the last three years.

"Therefore, I am not very much perturbed by a particular expression or phrase. I am optimistic about the progress we are having in our composite dialogue, including Jammu and Kashmir," the minister said.

To a query on reports in a section of the media about joint management of Kashmir, the Minister said Pakistan Prime Minister Shaukat Aziz has himself told him that he did not give any details on the kind of discussions that were taking place between the two countries.

"I hope this is adequate to dispel any doubts or questions (on the issue)," he said.

Aziz at a press conference in New Delhi on Tuesday had spoken of forward movement in the Indo-Pak dialogue process but linked free trade with India to progress on the core issue of Kashmir.