It also offered student visas to Pakistanis on case-by-case basis for studying in reputed Indian educational institutions.
The decisions were announced by Foreign Secretary Shyam Saran at a media conference after talks on the first of the the two-day dialogue which concludes Tuesday in Islamabad.
He also announced the extension of free medical facilities for Pakistani children suffering from cardiac ailments in Indian medical institutions.
Earlier, India had given free medical treatment to 40 Pakistani children. Now, 20 more children will be accorded such a facility.
Asked about Pakistan's response to this, he said this was a unilateral decision to be implemented by India and New Delhi would appreciate any reciprocal gesture by Pakistan. The visa relaxation proposals would be notified as soon as arrangements at the Wagah border were made, he said.