Khurshid is to hold talks with Nawaz Sharif's foreign affairs adviser Sartaj Aziz on Tuesday.
"We talk to Pakistan periodically and in terms of personal gestures we receive great warmth. But the on-the-ground reality and the results of our meetings are very disappointing," Khurshid told The Australian in an interview.
He said that India is prepared to take Pakistani Prime Minister Nawaz Sharif "at his word" when he says he wants peace with India.
"Pakistan has a lot of very, very difficult issues to deal with at home," he was quoted as saying.
"Our view is that we should give them time, not at our cost, of course, but that we should give them the benefit of doubt.
"When Mr Nawaz Sharif says he wants peace and good relations with India, we take him at his word."
"If they can address the dismantling of the infrastructure of terrorism, that would be a good start," he told the newspaper.
Khurshid's talk with Aziz on Tuesday is expected to focus on India's concerns over frequent ceasefire violations and infiltrations across the Line of Control (LoC).
India has said that peace and tranquillity on the LoC, which divides Kashmir between India and Pakistan, is a pre-condition to move forward in their dialogue.