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Buoyed by the decisive mandate the ruling coalition received in recent general elections, India's Prime Minister Manmohan Singh has set an ambitious agenda for his government. His primary focus is reviving economic growth through increased infrastructure investment and substantive financial sector reforms. But equally important, Mr. Singh is trying to set out a coherent Pakistan policy.

Addressing parliament on June 8, Mr. Singh indicated India was ready to "try again to make peace with Pakistan." He called on Islamabad to "bring to justice" those responsible for the terrorist attack in Mumbai last November. He added: "I expect the government of Pakistan to take strong, effective and sustained action to prevent the use of their territory for acts of terrorism on Indian...