Ruling out any solution from "outside" to the issue of Kashmir, US President Barack Obama on Sunday underlined that disputes between India and Pakistan can only be resolved by the two countries themselves.

Welcoming the Indo-Pak dialogue process, he said, "It is not the place of any nation, including the United States, to try to impose solutions from the outside."

"That said, nations must meet their responsibilities and all of us have a profound interest in a Pakistan that is stable, prosperous and democratic."

The US president was responding to a question on the current state of Indo-Pak relations and the best way forward for the two countries to resolve their bilateral matters, including Kashmir.

Obama told PTI that the US welcomed any dialogue and lessening of Indo-Pak tensions which would be good for South Asia and for the world.

"President (Asif Ali) Zardari's visit to India was encouraging. Increased trade and people-to-people contacts between Indians and Pakistanis can lead to greater prosperity and understanding on both sides."

"Efforts in New Delhi and Islamabad to improve relations give hope for further progress, including a possible visit to Pakistan by Prime Minister (Manmohan) Singh," he said.