"The two sides emphasized the importance of early operationalization of the hotline link proposed to be established between the foreign secretaries... to prevent misunderstandings and reduce risks relevant to nuclear issues," the statement issued at the end of two days of talks between experts said.

"It was agreed that the hotline link will be established in September 2005," it added.

The foreign secretaries are second to the foreign ministers in both countries.

In a separate agreement the bitter rivals, who are currently engaged in a peace process, decided to formally notify each other before flight-testing ballistic missiles, most of which are capable of carrying nuclear warheads.

The neighbouring countries who share a long and often volatile border conducted tit-for-tat nuclear tests in 1998 and came to the brink of war in 2002. The historical rivals, who fought three earlier wars, routinely carry out tests of nuclear-capable missiles.

Jane's Defence Weekly analyst Rahul Bedi said the hotline link was important and is likley to be similar to the one between the United States and the former Soviet Union.

"These hotlines are meant to avert a nuclear accident," he told AFP.

"The blueprint I think is what the Russians and the Americans have. It was important because the flight time of missiles between India and Pakistan is just three to four minutes. So you need very, very quick action," he added.

The statement said that the agreeement "commits both sides to pre-notify in a structured format flight-testing of ballistic missiles, with the objective of enhancing mutual confidence and engendering predictability and transparency of intent".

Head of the Indian delegation, Meera Shankar, said India also handed over to Pakistan a draft agreement "for undertaking national measures to reduce the risks of accidental or unauthorized use of nuclear weapons under their respective control".

Pakistani delegation leader Tariq Osman Hyder called the agreements "a step in the right direction".

"It's a good step," he said. "Pakistan and India are nuclear states, living side by side. We have to evolve the modality for confidence building (and) nuclear restraint for resolution of all disputes between us."

The two-day talks in New Delhi formed part of a peace process, which India and Pakistan started in January last year.

They aim to resolve disputes including the core problem of Kashmir, the Himalayan state claimed by both countries, where an Islamic insurgency on the Indian side has killed tens of thousands of people since 1989.

Bedi said the results of Saturday's talks were a "signpost" towards future progress in bilateral relations.

"This would help the peace process. It's a signpost for progress," he said.

Next week, negotiators from the two sides are due to meet in New Delhi to discuss other confidence-building measures and ways to expand commercial ties.

A meeting between the two foreign secretaries is likely in October following a possible meeting between Indian Prime Minister Manmohan Singh and Pakistani President Pervez Musharraf on the sidelines of the annual United Nations General Assembly session in September in New York.

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