FM S.M. Krishna told reporters: "I can confidently say that our relations are on the right track," Conceding that there were challenges that lay ahead.

Krishna added that he was "satisfied at the progress achieved" in the talks, adding: "We have reaffirmed our commitment to resolve all outstanding issues through a comprehensive, serious and sustained dialogue."

Khar, speaking on her first trip to India as foreign minister, praised Krishna and drew smiles from her counterpart as the two made their statements to the media.

"This is indeed a new era in bilateral cooperation between the countries," she said.

"A new generation of Indians and Pakistanis will see a relationship that will hopefully be much different from the one that has been experienced in the last two decades."