Referring to ties with China, the Prime Minister said it was not unnatural for two large neighbouring powers to have some differences but both sides should show sensitivity and respect for each other's core concerns and interests.
He was speaking at the inaugural session of the three- day-long Raisina Dialogue, India's flagship geo-political conference which is being attended by top foreign and security experts from across the world.
"My vision for our neighbourhood puts premium on peaceful and harmonious ties with entire South Asia. That vision had led me to invite leaders of all SAARC nations, including Pakistan, for my swearing in.
"For this vision, I had also travelled to Lahore. But, India alone cannot walk the path of peace. It also has to be Pakistan's journey to make. Pakistan must walk away from terror if it wants to walk towards dialogue with India," he said.
In his address, Modi gave a run down of India's foreign policy priorities, security interests in the Indian Ocean and bilateral engagement with neighbouring countries, Gulf nations and major powers including the US, China and Russia.
On Sino-India ties, he said both the countries have an unprecedented economic opportunities and that they can compliment each other in their march forward.
"I see the rise of India & China as an unprecedented economic opportunity for our two countries, and for the whole world. At the same time, it is not unnatural for two large neighbouring powers to have some differences.
Referring to India's ties with the US, he said a certain amount of speed, substance and strength to the entire spectrum of economic, commercial and security engagements has been brought to the relationship through sustained engagement.
"Over the past two-and-half years, we have given a strong momentum to our engagement with US, Russia, Japan and other major global powers," he said, delving on India's external engagement and geo-strategic interests.
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