US President Barack Obama's nominee as the envoy to New Delhi believes that India and Pakistan should improve their bilateral and trade ties before starting talks to resolve the 'delicate' Kashmir issue.

Appearing before the powerful Senate Foreign Relations Committee, Tim J Roemer, a former Congressman from Indiana, told US lawmakers in response to a question that Kashmir is a 'sensitive and delicate' issue.

"It's one that we would diplomatically encourage that the Pakistanis and the Indians first of all improve their relationship, their ties, their trade, their exchanges, to foster peace and more prosperity in that area between their two countries," he said to a question from Richard Lugar, Ranking Member of the Committee.

"Secondly, Senator, I think it's important to try to make sure that, where we can, in front of the scenes, behind the scenes, through diplomatic channels, encourage them to talk about this (Kashmir) issue and hopefully resolve it between their two countries," Roemer said.

"I think it has been an extremely sensitive hotspot for the world and for the region, where we have almost experienced thermonuclear war on several occasions," he said.