India will actively pursue talks with Pakistan and is sincere about discussing and resolving all issues, including Kashmir, Prime Minister Dr Manmohan Singh said on Thursday.

"We recognise that resolution of major issues requires national consensus and accommodation of public sentiment in both countries," Singh said in his first address to the nation after assuming office.

"It is self-evident that terrorism and violence would cast a dark shadow over this process. With our other South Asian neighbours, it will be our sincere effort to jointly realise the vast potential for cooperation, and to ensure mutual security, stability and development," he said.

His remarks come ahead of the crucial foreign secretary-level talks this weekend.

"We desire to live in a neighbourhood of peace and prosperity."

Singh made it clear that his government would maintain the tradition of an independent foreign policy, built on a national consensus and based on supreme national interests.

"We will expand our network of international relationships -- preserving solidarity with traditional allies and strengthening new partnerships. We will work with likeminded nations for an equitable, multi-polar world order, which takes into account the legitimate aspirations of developing countries," he said.

Touching on relations with China, the PM said, "We are encouraged by positive developments, which we are committed to strengthening."

Noting that bilateral economic cooperation has shown remarkable growth and diversification, he said, "We shall carry forward the process of discussions to resolve the boundary question from the political perspective of our bilateral relations."

Singh said as two of the world's great democracies, India's "strengthened" relationship with the US was a fact of "considerable importance".

He said the transformation of India's relations with the US has been supported by the expansion of economic links and people-to-people ties.

"We will welcome the expansion of cooperation between the two governments to include new and mutually beneficial areas, particularly high technology," he said.