The two nations decided earlier this year to restart wide-ranging peace talks. Last month, Pakistan quickly returned an Indian helicopter and its crew that had strayed across the tense border, and last week Pakistan announced it would normalize trade with India.
Singh praised Gilani as a man of peace and said the two neighbors needed to understand that their destinies are interlinked.
In their meeting, Singh and Gilani discussed the dicey issues of border disagreements, terrorism, trade and the divided territory of Kashmir, Gilani said.
The two countries have deep animosity for each other, but many in India see the simmering tensions – and the huge military costs they demand – as a drag on the country's economic ambitions. Singh has long pushed for peace talks, but the 2008 attack on the Indian city of Mumbai by Pakistan-based terrorists froze those efforts.
http://www.huffingtonpost.com/2011/11/10/india-pakistan-relations-_n_1085590.html