"I want our relations to improve ... If relations between India and Pakistan improve, a lot of things can happen. I think border states such as Punjab and Rajasthan would benefit if relations improve," he told reporters.
"Until relations between India and Pakistan improve and brotherhood increases, the atmosphere is not right for moving ahead," he said, adding "there are some forces in that country (Pakistan) that do not want relations between the two neighbours to improve."
He also said Foreign Secretary Nirupama Rao will not be sent for talks with her Pakistani counterpart in New York in Sep 2009.
He reiterated that India would not resume composite dialogue until it had concrete evidence that Pakistan had taken action against terrorists.
"People have tried to misinterpret the Sharm el-Sheikh joint statement," he added.