Indian Prime Minister Atal Behari Vajpayee announced today India would re-establish full diplomatic ties with Pakistan and restore air links with its arch-rival.
But Mr Vajpayee, in an address to parliament, also ruled out international mediation in the two neighbours' bitter dispute over Kashmir.
"It has been decided to appoint a high commissioner to Pakistan and to restore civil aviation links on a reciprocal basis," Mr Vajpayee told the lower house of parliament.
Diplomatic ties and air links between India and Pakistan were severed following an attack on India's parliament in December 2001 by gunmen New Delhi claims were sponsored by Islamabad.
India accuses Pakistan of encouraging an uprising in its sector of the disputed Himalayan region and of sponsoring attacks by Islamic militants across the de facto border.
Pakistan insists it only provides moral and diplomatic support to militants it regards as freedom fighters engaged in a struggle for self-determination.
AFP