New Delhi - India will meet Pakistan "more than halfway" if Islamabad cracked down on terrorist groups, Indian Premier Manmohan Singh said Tuesday in a message of peace after months of tension between the neighbours following the Mumbai terror attacks in November.

Speaking in the Indian parliament, Singh also condemned racial attacks on Indian students in Australia and said he will open a high-level dialogue with authorities in that country to provide adequate security to the students.

On Pakistan, Singh said India had a "vital interest" to try again and make peace with Pakistan, but added that it took "two hands to clap."

"I expect the government of Pakistan to take strong, effective and sustained action to prevent the use of their territory for the commission of acts of terrorism in India or against Indian interests and use every means at their disposal to bring to justice those who have committed these crimes in the past, including the attack on Mumbai," Singh said.

Such actions will be welcomed by people of both the countries, he said. "If the leaders of Pakistan have the courage, determination and statesmanship to take this road to peace, we will meet them more than half way," Singh added.

Ties between the nuclear-armed neighbours sunk to a new low after attacks in Mumbai last November that left over 170 dead and were blamed on a Pakistan-based militant outfit, the Lashkar-e-Taiba (LeT).

New Delhi halted peace talks, saying resumption of the dialogue was possible only after Pakistan took credible steps to prevent terrorism directed against India.

Later in his speech, Singh said his Australian counterpart, Kevin Rudd, had recently assured him that racist attacks on Indian students would be "strongly dealt with."

"I have been appalled by the senseless violence and crime, some of it racially motivated, against our students in Australia. I propose to engage the authorities in Australia in a high-level dialogue with a view to taking stock of the situation and to provide adequate security for Indian students," he said.

In the comments covering aspects of Indian foreign policy with its neighbours, Singh urged the Sri Lankan government to "show courage" to meet aspirations of the ethnic Tamil community following the defeat of the rebel Tamil Tigers.

Singh said India had a multi-faceted and strategic relationship with China.

"There is enough space for both China and India to develop and contribute to global peace, stability and prosperity. We do not see relations with China in antagonistic terms," he said, adding that the Asian giants were working closely on global issues including climate change and terrorism. (dpa)