Even as Prime minister Manmohan Singh and US President Barack Obama pledged to deepen economic and strategic ties, they signalled differences on how best to improve relations between India and Pakistan.

With Obama by his side, Singh underlined his commitment to pursuing peace with Pakistan but made it clear that as long as the ?terror machine? was active against New Delhi it will be difficult to keep on talking.

He told the newsmen at a joint press interaction with Obama after wide-ranging talks, ?You can?t simultaneously talk and have at the same time terror machinery active as ever before.?

?India is committed to resolving all outstanding problems with Pakistan, but Pakistan should also ensure that it moves away from terror-induced coercion. We will be happy to engage productively,? the Prime Minister said when an American journalist asked the US President about his views on Kashmir.

Referring to the dispute over Kashmir, Singh said, ?We are not afraid of talks with Pakistan. We are not afraid of the K-word.?

Issues relating to Pakistan-origin terrorism and terror groups active in the region figure prominently in restricted discussions Manmohan Singh and Obama, said official sources.

Agreeing with Obama who said it was in the interest of India and Pakistan to reduce tensions, the Prime Minister said a ?strong, moderate and peaceful Pakistan is in the interest of India, South Asia and the world as a whole?.

The US president, on his part, ruled out mediation between India and Pakistan in their bilateral disputes and backed India?s approach of confidence building measures before pursuing more controversial issues, a point he had made in Mumbai on Sunday during an interaction with students.

?Obviously, that?s a long-standing dispute between India and Pakistan. Both India and Pakistan have an interest in reducing tensions,? Obama said.

The US can?t impose solutions, he said, but added that the US would be happy to play ?any role? that the partners thought is appropriate.

?The Prime Minister has spoken out privately and publicly about his desire and personal commitment to reduce tensions between India and Pakistan,? Obama said.

?Prime Minister is sincere and relentless in his desire for peace,? Obama said.

Obama also stressed the two sides will deepen their cooperation in counter-terrorism measures by initiating a dialogue on homeland security.