NEW DELHI, Jan 20: Indian Defence Minister George Fernandes said on Tuesday that there was a "definite desire" on the part of India and Pakistan to improve bilateral ties and find peace.

"There is a definite desire in the two countries and governments to bury the hatchet," Mr Fernandes told Press Trust of India (PTI) news agency. Commenting on the ceasefire offered by Pakistan along the Line of Control, Mr Fernandes said: "Not a bullet has been fired. We hope that both countries can carry forward the peace process."

The defence minister told PTI he also wished President Pervez Musharraf, who recently survived assassination attempts, "a long life". He added: "While the post-9/11 saw a global turbulence and increase in security concerns for India, the current peace initiative with Pakistan may largely, if not completely, change the security scenario." "The levels of production in future for the defence sector may be dictated by other factors."

SAFTA RATIFIED: The Indian cabinet gave a formal approval on Tuesday to the creation of a South-Asian Free Trade Area (Safta), agreed upon this month by the Saarc member countries. The agreement is expected to come into effect from Jan 1, 2006, Parliamentary Affairs Minister Sushma Swaraj said.-AFP