PREVIEW - Pakistan, India meeting may lead to start of dialogue

By Rina Chandran

MUMBAI (Reuters) - A meeting of the prime ministers of India and Pakistan on the fringes of the Non-Aligned Movement Summit this week could set the stage for a dialogue between the rivals that was stalled after last November's attack in Mumbai.

Prime Minister Manmohan Singh and his Pakistani counterpart Yusuf Raza Gilani will meet in Sharm-el-Sheikh in Egypt after their foreign secretaries have talked.

While their talks will be focused on Pakistani action with regard to the attacks in Mumbai that killed 175 people, the leaders may leave the door open to resumption of dialogue, especially with Singh back in power for a five-year term.

"Now that the Congress party-led coalition has come back, Singh is unlikely to feel the need for maintaining the hardline position that he adopted (before the election) on the composite dialogue," said B. Raman at the South Asia Analysis Group.

"The question is no longer whether it will be resumed, but when and how it will be projected," he said.

Pakistan has been pushing for the resumption of the five-year-long peace talks broken off by India after the Mumbai attacks, which India blames on Pakistan-based militants.

Peace between the two nuclear-armed rivals had helped boost bilateral trade to over $1 billion, encouraged cross-border bus and train services, and eased visa restrictions for travel.

Fresh from his meetings in Italy with leaders of the G8, Singh, who has said he was willing to meet Pakistan "more than half way" if it cracked down on militants, will be keen to bring home some progress on Pakistan, as well.