The thaw has been encouraged by Western allies, in particular the United States, which sees regional stability as key to winning the war in Afghanistan and has pushed Pakistan to fight Taliban insurgents.]
By Claire Truscott
The talks are the third high-level contact in six months and the foreign ministers' first meeting since 10 Islamist gunmen killed 166 people in 60 hours of carnage in India's financial capital two years ago.
The agenda is likely to be dominated by Indian concerns about terrorism, violence in India-administered Kashmir , rivalry in Afghanistan and allegations that Pakistan 's intelligence agency was behind the 2008 attacks.
As the ministers met, a suicide attack killed five people in the northwestern district of Swat, spotlighting Pakistan 's own struggle against Islamist militants who have killed more than 3,500 people in three years.
The meeting was also overshadowed by comments that an Indian newspaper attributed to India 's senior civil servant in the home ministry, G. K. Pillai, blaming Pakistani intelligence for masterminding the Mumbai siege.
Indian newspapers called on Krishna to spell out alleged new evidence that Pakistan 's intelligence agency orchestrated the Mumbai attacks.
Pillai told the Indian Express newspaper that the level of involvement of Pakistan 's Inter-Services Intelligence (ISI) had become clear through recent questioning of David Headley, a suspect under arrest in the United States .
Headley, the US-born son of a former Pakistani diplomat and an American woman, was arrested in Chicago last year and has pleaded guilty to scouting the hotels and other sites in Mumbai that were targeted by the militants.
"Foreign Minister S. M. Krishna to nail Pak using David Headley," said the front-page of the Hindustan Times.
Although the ultimate goal is to resume peace talks, analysts say the meeting is unlikely to yield concrete agreement beyond possible trust-building measures that could help ease deep distrust.
A Pakistani official told AFP that a scheduled news conference had been delayed more than three hours to 6 pm (1300 GMT), to make way for talks with Pakistani President Asif Ali Zardari and Prime Minister YousufRaza Gilani.
Both sides were trying to craft a joint statement, the official said. Krishna on Wednesday conveyed a message of "peace and friendship" but called on Islamabad to act decisively against terrorism, saying "the cancer of terrorism needs to be rooted out completely".
Relations between the two countries, which have fought three wars since the subcontinent was divided in 1947, have been plagued by border and resource disputes, and accusations of Pakistani militant activity aimed at India .
The thaw has been encouraged by Western allies, in particular the United States, which sees regional stability as key to winning the war in Afghanistan and has pushed Pakistan to fight Taliban insurgents.
Also please see: INDIA MAKING MAJOR EFFORT TO BRIDGE THE TRUST DEFICIT WITH PAKISTAN