Pakistan President Pervez Musharraf arrived in New Delhi on Saturday on a three-day visit.
Setting a positive tone ahead of their talks, Musharraf said India and Pakistan should now seize the "unique opportunity" to resolve Kashmir and all outstanding issues.
Officials preparing for the talks said India would focus on the confidence building measures to promote "soft border" along Kashmir and enhance people-to-people contacts while it was ready to discuss all issues.
In a statement after his arrival Musharraf said "the composite dialogue process as well as people to people contact in the last 15 months have created a huge constituency of goodwill in both the countries and led to an improved political environment.
"We need to seize this unique opportunity to address all our bilateral issues including Jammu and Kashmir dispute".
Maintaining that he had come with an open mind, he expressed the hope that his meetings with the Indian leadership over the next two days would help both countries to strengthen and invigorate the peace process to settle disputes and build a better future for the coming generations.
Photograph: RAVEENDRAN/AFP/Getty Images
Also read: Cricket & Kashmir - Musharraf's Agenda