New Delhi and Islamabad announced on February 10 that they would resume full peace talks which were suspended more than two years ago after Islamist gunmen from Pakistan attacked India's financial capital Mumbai.
"We wish to resolve all outstanding issues between the two countries through friendly dialogue and constructive and purposeful negotiations," Manmohan Singh said at a function at a university in the disputed state of occupied Jammu and Kashmir.
"This includes the issue of Jammu and Kashmir," he said in Jammu, Kashmir's winter capital.
Pakistani Foreign Minister Shah Mehmood Qureshi is slated to visit India in July at the start of the full-scale resumption of talks.
"We are willing to discuss all issues that have a bearing on the peace, dignity and well-being of the people of Jammu and Kashmir," Singh added.
"This subcontinent of ours will not realise its full development potential unless relations between India and Pakistan are normalised," Singh said.