Top diplomats from India and Pakistan reopened the Composite Dialogue Process after a gap of nearly four months in a bid to revive a peace process that was halted by deadly train bombings in Mumbai in July.
The two-day talks between the neighbours are expected to set up a system to combat terrorism.
They come a few months after Indian and Pakistani leaders agreed to resume negotiations after meeting on the sidelines of a Non-Aligned Movement (NAM) summit in September.
"The primary focus will be on the joint mechanism on terrorism," a top Indian foreign ministry official said, referring to talks between Indian Foreign Secretary Shiv Shankar Menon and his Pakistani counterpart, Riaz Mohammad Khan.
"Let's see how Pakistan responds. We hope to be able to set up the joint mechanism, discuss its mandate, its composition and see how it goes," said the official, who declined to be named.
Pakistan's foreign secretary said he hoped to have "very constructive discussions" after arriving in New Delhi on Monday.
India suspended dialogue with Pakistan after blaming its spy agency for the Mumbai bombings that killed 186 people. Islamabad and the Lashkar-e-Taiba group have denied links to the blast.