India and Pakistan on Wednesday set up a joint anti-terror forum and agreed on a plan to reduce the risk of accidental nuclear conflict in south Asia at the first peace talks since bombs ripped through Mumbai and killed more than 200 people in July.

But Shiv Shankar Menon, India’s foreign secretary, said they remained “a long way” from enjoying neighbourly relations and were far apart on key issues, including the demilitarisation of the Siachen glacier.