He also said that all countries should develop the "spirit" of the European Union (EU) in joining together.
"I am one of the admirers of European Union. I often express that EU spirit eventually should develop in African Union. Eventually Latin America, I think, should develop one Union. Also sometimes I feel, the new President of America (Donald Trump), you see, create a wall and I feel Mexico should be a part of United States, I feel," he said.
"In order to achieve demilitarised world, we must make effort to create spirit of dialogue, it is practical way. The best method is dialogue, whenever some different interest or different view happen, through dialogue and talk we can resolve," he said stressing on the need to make the 21st century as the century of dialogue.
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The Dalai Lama said the Indian psychology, when compared with modern psychology, is highly developed.
"Modern psychology looks like KG level when compared to Indian psychology," he said.
"Mentally, emotionally, physically we are same human
beings. Secondary-level there are differences, different nationality, different race, different family background, that's secondary, (which is) not important," the Dalai Lama said.
He said it is really "unthinkable" and "sad" that religious faith itself is causing divisions and killings.
Pointing out that things were changing, particularly among younger generation with a sense of concern for others' well- being and against violence, he said we must develop determination to bring peace.
Earlier, the Dalai Lama, Andhra Pradesh and Telangana Governor ESL Narasimhan, Telangana Deputy Chief Minister Mohammad Mahmood Ali, state IT Minister KT Rama Rao and other dignitaries took part in the ground-breaking ceremony of the Dalai Lama Centre for Ethics and Transformative Values here.