"Talks can resolve any issues in a democratic system," Cameron told Manchester-based 'Asian Lite' newspaper.
"As leaders of two great democracies, Prime Minister Manmohan Singh and Prime Minister Nawaz Sharif will soon launch bilateral talks to resolve all the issues between the nuclear armed countries for the welfare of the billion plus people," he added.
The British Prime Minister went on to praise his Indian counterpart as an example for other world leaders to emulate for his determination and knowledge to turn India into an global economic power.
"I met Prime Minister Nawaz Sharif just after the Pakistan elections, and I am sure the new leader of Pakistan will ensure peace and stability in the region," Cameron was quoted as saying.
The leader of Britain's Conservative-led coalition government had recently also urged the two sub-continent neighbours to help bring peace to Afghanistan.
"India and Pakistan can play a crucial role in bringing peace back in Afghanistan," he had said last month.