Concerns over terrorism are likely to dominate India's agenda since US troops killed Osama bin Laden in Pakistan and since a four-year peace process collapsed when Islamist gunmen killed 166 people in Mumbai in November 2008.
India blamed the attack on Pakistani militants from the banned Lashkar-e-Taiba group and Islamabad acknowledged that the plot was hatched at least partly on its soil.
Ending a more than two-year freeze, the two countries announced peace talks would resume after a meeting in February between Pakistani foreign secretary Salman Bashir and his Indian counterpart Nirupama Rao.
Rao said she had come "with an open mind and a constructive spirit" to work towards building "trust and confidence" that would eventually lead to a normalisation of relations between the nuclear-armed rivals.
Both sides say talks will focus on the fate of the divided Himalayan region of Kashmir, peace and security and confidence building, in preparation for a scheduled visit by Pakistan's foreign minister to India next month.
"We expect that the talks will be positive and forward looking," Pakistani foreign ministry spokeswoman Tehmina Janjua told AFP. A senior Pakistani ministry official told AFP the talks started around 3:30 pm (1130 GMT).
No breakthroughs are expected, but the contacts are considered a key element of efforts to stabilise the region after US President Barack Obama announced the start of US troop withdrawals from Afghanistan.
The international community has been pushing the two sides to get back to the negotiating table to help ease tensions in an already volatile region.
"We have to be patient, realistic and positive," Indian Foreign Minister S.M. Krishna said this week, calling for terrorism to be dealt with "firmly and transparently".
New Delhi has long accused its neighbour of harbouring militant groups, but analysts say it is becoming increasingly concerned that growing unrest in Pakistan could compromise the safety of the country's nuclear arsenal.
Relations between India and Pakistan, which have fought three wars since the subcontinent was partitioned in 1947, have been plagued by border and resource disputes, and accusations of Pakistani militant activity against India.
Two of the three wars were over Kashmir, where militants have been fighting New Delhi's rule for two decades in an insurgency that has claimed tens of thousands of lives.
After the Mumbai carnage, Delhi and Islamabad began to explore a resumption of structured talks last year, and Indian Prime Minister Manmohan Singh and his Pakistani counterpart Yousuf Raza Gilani met in Thimphu in April 2010.
Talks on the disputed Himalayan glacier of Siachen, where troops have clashed intermittently since 1984, concluded a month ago without progress.
"There will be no major breakthrough in the talks but I am sure that the process will now go on to enable the two countries to discuss and sort out issues," Pakistani foreign policy analyst A.H.Nayyar told AFP.
