Kolkata, Nov 8 India is going to take a cautious approach towards the US President-elect Barack Obama, as was obvious from the reaction of External Affairs Minister Pranab Mukherjee in Kolkata today.

Mukherjee made it clear that Kashmir was a bilateral issue between India and Pakistan. In an obvious reference to reports that Obama might consider former US President Bill Clinton as an advisor on Kashmir, Mukherjee made it clear that as far as India was concerned, the Simla Agreement was the only parameter within which a solution to the Kashmir issue would be sought.

Mukherjee also made it clear that India preferred a wait and watch policy as far as Obama's moves towards resolving the current economic crisis were concerned. The External Affairs Minister said what measures Obama took to solve the problem within the US was their domestic matter. On how the new economic policy would affect the world would have to be seen.

Mukherjee was in Kolkata to address a conference organized by the Indian Chamber of Commerce. West Bengal Chief Minister Buddhadeb Bhattacharya was also present on the occasion. By Ajitha Menon (ANI)