"Better and closer relations with our immediate neighbours will not only make for regional peace - they will also have a positive impact on some of our own border states," Gandhi said.
"However, let us be clear. Our dialogue must be based on accepted principles of civilized behaviour. We will never compromise on our vigil and preparedness to deal with terrorism and threats on our borders," she added.
Gandhi further said that India's foreign policy has a vision of occupying its rightful place and exercising its unique influence in world affairs.
Ties between the two neighbours have been strained ever since the Jan 6 killing of a Pakistani soldier allegedly in firing by Indian troops.
Two days later, Pakistani soldiers brutally killed two Indian soldiers, including beheading one of them, near the Line of Control (LoC) in Jammu and Kashmir.
India has welcomed Pakistan's offer for talks to de-escalate tensions along the border.