India says it has held "fruitful discussions" on a long-running border demarcation issue with Pakistan.
The talks focused on Sir Creek, a narrow strip of marsh land separating India's western border from Pakistan.
The two sides decided to conduct a joint survey of Sir Creek and adjoining areas to obtain information which would allow for better decisions to be made.
Pakistan has said it will free 71 imprisoned Indian fishermen as "a goodwill gesture".
The Pakistan announcement came ahead of further bilateral talks on a range of issues planned for next Tuesday.
Islamabad said the Indians were arrested after entering Pakistan's territorial waters.
Pakistan and India routinely arrest the other nations' fishermen for alleged border violations.
Survey plan
Major General M Gopal Rao, who led India's delegation to the Sir Creek talks, said the discussions had "narrowed down differences substantially".
He said the two sides were working on plans to conduct a joint survey of the Sir Creek area between November 2006 and March 2007.
Technical experts will meet in Pakistan in August to plan the details of the work.
Admiral Ahsan-ul-Haq Chaudhary, who headed the Pakistan team, said: "We came here with the will to make progress and it is with the effort of both parties that we have come to some positive way ahead."
Sir Creek lies between the Indian state of Gujarat and the southern Pakistani province of Sindh.
Much of the land is either marsh or desert that neither side sees as being militarily important. It is also sparsely populated.
But this inhospitable terrain - famous on the Indian side for its high quantities of salt - was the scene of heavy fighting between India and Pakistan in 1965.
India says the boundary should be in the middle of the 100-km (60-mile) estuary. Pakistan says the border should lie on the south-east bank.