Secretary of State Colin Powell described the Vajpayee-Musharraf meeting as 'historic'.
Many in party believe that Advani will be left out as the group of veterans supporting him will not stick together for long.
Asking the European businessmen to shed their old image of India, External Affairs Minister Yashwant Sinha on Friday said things have changed here and it is "now a happening place," opening bright prospects for a partnership with a "new India."
President A P J Abdul Kalam left New Delhi on Saturday on a week-long visit to the United Arab Emirates, Sudan and Bulgaria, his first foreign tour after assuming the high office.
The United States may lift restrictions imposed on exports of high-technology items to India, External Affairs Minister Yashwant Sinha said in London on Thursday.
'In order to sustain dialogue we need peace and it is that peace which is being impaired by cross-border terror,' he said.
He is also likely to meet his counterparts from key countries like Russia, China and Israel.
India also assured its neighbour that New Delhi was ready to remove any Pakistan-specific trade barriers.
The incident, involving a Chinese patrol, occurred in Arunachal Pradesh, on June 26, 2003.
The negotiations with Bangladesh for a free trade agreement will begin before October this year, External Affairs Minister Yashwant Sinha informed the Rajya Sabha on Thursday.
India is optimistic that Pakistan would soon reciprocate by giving it the most favoured nation status, which would lead to a "win-win" situation for both countries.
India on Monday strongly advocated the establishment of "South Asian Union" as it sought to enhance the bilateral trade - with Pakistan - which had the potential to touch $6 billion.
India is expected to extend a $10 million credit to South Africa at the fifth joint commission meeting of the two countries that begins in Pretoria on Thursday.
The two sides signed nine accords, including one on simplifying visa procedures.
China on Monday pledged an investment of $500 million for infrastructure development and resource building in India and agreed to a plan of action for economic cooperation between the two countries.
Pakistan, as Security Council president, cannot impose any issue on the world body, Russian Deputy Foreign Minister Yuri V Fedotov said.
'When it comes to the sustenance and the defence of the country, we would go to any extent,' Prime Minister Jamali said.
The defence minister also said that Pakistan 'has a habit of lying' when it comes to the Kashmir issue.
The US secretary of state said Washington was in "very close touch" with both Pakistan and India.
India had asserted that it reserved the right to launch a pre-emptive strike against Pakistan.
Expressing concern over the situation in Afghanistan, a group of eminent persons, including former ministers K Natwar Singh, Yashwant Sinha and Mani Shankar Aiyar, on Wednesday urged the government to continue engaging with the Taliban and not allow any political party to use the developments in that country to communally polarise Indian society for electoral gains.
According to Yashwant Sinha, a national-level pre-poll alliance of all opposition parties should be formed or a nationwide pre-poll alliance of regional parties should be made to defeat the BJP in the general elections.
It voiced optimism over the outcome of the three-day talks with Pakistan.
US Secretary of State Colin Powell spoke to External Affairs Minister Yashwant Sinha on Friday night for a general exchange of views ahead of a visit next week by a top Bush administration official to India.
Opposition members said the former finance minister had misled the Lok Sabha on the Calcutta Stock Exchange payment crisis and the UTI fiasco.
While a DFI will help banks derisk their loan portfolios, creation of a bad bank will clean up their balance sheets.
The former finance minister also objected to the filing of a Rs 100 crore defamation suit against The Wire, which carried a story on Jay Shah's business.
In a bid to boost economic and trade ties with energy rich Central Asia, India has agreed to actively participate in building trans-Afghanistan road and rail links between Uzbekistan's Termez to Iran's Chahbahar Port in the Gulf.
Vajpayee had travelled to Lahore in a bus from India in 1999 and started a peace initiative with Pakistan in 2004.
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