TEHRAN - India and Pakistan, the two estranged South Asian neighbors, have shown inclination to bury the hatchet and open a new chapter in their relationship since the change of guard in Islamabad.

Speaking on the new window of opportunity to improve ties between the two countries, Indian High Commissioner to Pakistan Ajay Bisaria said on Sunday that New Delhi was filled with cautious hope as Islamabad had opened a political window.

Bisaria, addressing a function in Indian city of Kolkata on Friday, said the relations between the two countries had received a setback after the Pathankot and Uri attacks, which India blamed on Pakistan. But, he added, the new government in Islamabad had filled New Delhi with cautious hope.

"Terrorism is a deal-breaker; what is important is a bilateral conversation and that will happen when terrorism ends,” he said, while stressing on enhanced bilateral trade and release of Indian prisoners in Pakistan and their repatriation on humanitarian grounds.

During the first two years of Narendra Modi government in New Delhi, New Delhi and Islamabad did hold peace talks but the peace process was virtually shelved after some terrorist attacks in India.

In his victory speech after elections, PM Khan expressed his desire to improve ties with all neighbors including India. He said Pakistan will take two steps on Kashmir if India took one step.