Talking to reporters after the Iftar dinner hosted by acting Indian High Commissioner Gopal Baglay here, he said: "We hope that the dialogue process will start very soon."
He said that the two prime ministers were expected to meet on the sidelines of UN annual summit in September, but "the time and date has not been decided as yet".
Rejecting the idea that Indus water treaty was "redundant," Raghavan said it can help both sides solve water-related issues.
The high commissioner designate has not formally taken charge because President Asif Ali Zardari is out of the country and he has not been able to present his credentials.
The relations between the two neighbours were badly hit after the 2008 Mumbai attacks which killed at least 166 people, resulting in the suspension of the five-year old composite dialogue process.
There have been positive signals from both sides after May 11 elections in Pakistan in which Nawaz Sharif returned to power.
Sharif also sent his pointman for back channel diplomacy with India, former foreign secretary Shehryar Khan, to New Delhi to deliver a special letter to the Indian Prime Minister.
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