"Key to the problem in Kashmir is a political solution that addresses the alienation and emotional needs of the people," Singh added.
PM said that government is ready to discuss all the issues within the bounds of democratic process.
Calling for a new beginning, the Prime Minister said there had been very little development in Jammu and Kashmir.
Singh also spoke on the role of security forces in the Valley and urged the state government to take action to protect policemen and their families.
"Jammu and Kashmir Police and other security forces are performing an extremely challenging task in difficult circumstances. We should not do anything to demoralize the security forces," he added.
He also assured that government is planning to build up a special committee with experts like Narayan Murthy and others to formulate a jobs plan for the state involving both public and private sectors.