“Some steps have been taken. More steps will be taken,” Vajpayee told reporters just before he left on a tour of European nations. “I believe an atmosphere will be created in which talks can start,” he said.

Nuclear-armed India and Pakistan have not held formal talks since a failed summit between Vajpayee and Pakistan President Pervez Musharraf in July 2001.

The two countries came to the brink of war last year after an attack on the Indian Parliament in December 2001 which New Delhi blamed on Pakistan-based guerrilla groups fighting Indian rule in Kashmir. Islamabad denied involvement. India and Pakistan have since ordered restoration of full diplomatic ties and air links. New Delhi also said on Monday it would release Pakistani fishermen and civilians held in Indian jails. Last weekend Islamabad freed 20 Indian prisoners.

Vajpayee, 78, who promised last month to make a final bid for peace in his lifetime, reiterated that Pakistan must crack down on guerrilla groups operating from its soil.

“We want terrorism to end as early as possible, for the infrastructure of terrorism to be destroyed, and the atmosphere to become good so that talks can take place,” he said.

The visit to Germany is the first by an Indian prime minister in nearly a decade, following the February 1994 trip by P.V. Narasimha Rao.

The premier’s delegation includes Foreign Minister Yashwant Sinha and Commerce Minister Arun Jaitley.

Vajpayee is also expected to meet representatives of German industry in Munich, where a number of Indian IT firms have opened offices.

Before he left, Vajpayee described his visit to Germany as “important” and said it was an “agreement between Chancellor Schroeder and me that we should hold regular summit meetings.

“I hope to discuss... concrete measures to strengthen our political and economic cooperation and our collaboration on global issues like international terrorism and the World Trade Organization (WTO),” he said.

Vajpayee will arrive in Russia on the second leg of his tour on May 30, to join 300th anniversary celebrations in Saint Petersburg.