NEW DELHI, June 24: Indian Prime Minister Manmohan Singh said on Thursday his government would pursue a composite dialogue with Pakistan aimed at sincerely resolving all issues, including the Kashmir dispute.

Dr Singh said India would keep a minimum nuclear deterrent and abide by the doctrine of no-first use of nuclear weapons. In a televised address to the nation, the Indian leader spelt out his government's foreign and economic policies, an opportunity he was denied in parliament.

He appealed to the opposition to allow the parliament to function properly, a request unlikely to be easily heeded because of a dispute over certain 'tainted' ministers.

"We desire to live in a neighbourhood of peace and prosperity," Dr Singh said. "We will actively pursue the composite dialogue with Pakistan. We are sincere about discussing and resolving all issues, including Jammu and Kashmir."

He stressed that the flexibility needed on both sides to resolve their political issues. "We recognize that resolution of major issues requires national consensus and accommodation of public sentiment in both countries," he said. "It is self-evident that terrorism and violence would cast a dark shadow over this process."

He said that in pursuing relations with India's other South Asian neighbours, a sincere effort would be made to jointly realize the vast potential for cooperation, and to ensure mutual security, stability and development.

Dr Singh said India's relations with China were encouraged by positive developments, which his government was committed to strengthening. The new government would carry forward the process of discussion to resolve the boundary question from the political perspective of our bilateral relations, he added.

Transformation of India's relations with the United States, he said, had been supported by the expansion of economic links and people-to-people ties. "We will welcome the expansion of cooperation between the two governments to include new and mutually beneficial areas, particularly high technology," he said.

"The strength and vibrancy of our partnership with Russia has withstood the flux of the post-Cold War world," he said. The United Progressive Alliance government will accelerate the diversification of this relationship, particularly in defence, high technology, space and nuclear energy, while intensifying economic cooperation.

Praising the armed forces for their professionalism and the spirit of self-sacrifice, Dr Singh said that there would be no pruning of the defence budget. "I assure the nation that we will not be found wanting in providing for our armed forces, or in caring for our ex-servicemen.

We will streamline defence acquisition procedures so that our forces obtain the modern weapon systems and technologies. Our government will ensure that the necessary funds are made available for these purposes."

The budget session of parliament will start in early July. He said: "India is a responsible nuclear power, and we will continue to work to prevent proliferation of weapons of mass destruction. At the same time, we remain committed to the goal of universal nuclear disarmament," he declared.

He said terrorism posed a grave threat to the unity and progress of the country. "We shall combat it with all the resources at our command. There shall be no doubt whatsoever about our resolve to deal with this insidious threat to our nation."

The government, he said, would continue the process of dialogue with the All Parties Hurriyat Conference and all other groups in Jammu and Kashmir. The government was willing to talk to all disaffected groups provided they shunned violence, he added.