NEW DELHI (Agencies) US President Barack Obama has criticised the pace of Pakistans fight against militants within its borders. He said Islamabad was making progress against what he called the 'cancer of extremism but not quickly enough. Progress is not as quick as we would like, he added, noting that many militants were holed up in the rugged northwestern Pakistani regions close to the Afghan border. Obama made it clear that the US would not 'impose itself on Indo-Pak relations. There are more Pakistanis whove been killed by terrorists inside Pakistan than probably anywhere else, Obama said. The US President urged India and Pakistan to talk to resolve their differences as he stressed the need for peace between the neighbours, who are vital for his plans in Afghanistan. Venturing into the delicate area of relations between the two South Asian countries, Obama insisted New Delhi had the most to gain from a stable Pakistan, while urging Islamabad to do more to address extremism. My hope is that, over time, trust develops between the two countries, that dialogue begins perhaps on less controversial issues building up to more controversial issues, he said on the second day of a three-day trip to India. I am absolutely convinced that the country that has the biggest stake in Pakistan is India, he told students at the prestigious St Xaviers College in south Mumbai. If Pakistan is stable and prosperous, thats best for India, he added. Answering questions from a gathered crowd of students at St Xaviers College, Obama gave an impassioned defence of US policy in the region. Obama fielded tricky questions on Pakistan, jihad and disappointing midterm poll results from students at an open forum last event of his Mumbai visit before he headed to New Delhi. More than 300 students attended the open-air question and answer session, in which the US president answered six questions on various subjects. Twenty-year-old Anam Ansari, a third year science student asked Obama for his opinion on jihad, setting the tone for the rather scorching afternoon. Afsheen Irani said she had planned to ask a question about education but changed her mind to ask about Pakistan 'because I thought he had not spoken about this issue in this visit. It was a diplomatic answer. I had to be satisfied with what I got. One student asked him why the US did not declare Pakistan a terrorist state. We will work with the Pakistani government in order to eradicate this extremism that we consider a cancer within the country that can potentially engulf the country, said Obama. Later in the afternoon, Obama landed in New Delhi and greeted the waiting Prime Minister Manmohan Singh with a hug. The Obamas and the Singhs chatted with each other for a few minutes, before the president went for a scheduled tour of a Mughal-era tomb. The leaders were to meet for dinner at Singhs residence later. Obama has frequently praised Singh as a leading global statesman, and their mutual regard appeared evident in the smiles and warmth of the often inscrutable Indian premier. Talks between the two on Monday will look to build on a small but growing trade relationship, with Obama looking for export opportunities, as well as engagement from India politically in Pakistan and Afghanistan. Among other things, Singh is likely to press Obama for a more concrete commitment to support Indias quest for a permanent seat at the United Nations Security Council. Obamas remarks on Pakistan did not break new diplomatic ground for the United States - his government has said before that Pakistan must do more on extremism - but were highly significant given their venue in Mumbai. US President Barack Obama will discuss Pakistan in the context of regional security and counterterrorism in his speech to the Indian parliament on Monday, a senior administration official said on Sunday. The president will definitely discuss Pakistan, the official said, but declined to go further than that because he did not want to get ahead of the presidents remarks. The US president arrived in India looking to inject new momentum into a strategic relationship for Washington, while aware of the need to rebuild his reputation at home after a drubbing in mid-term elections. The United States does not just see India as a rising power, we believe India is already risen, the US president said, noting his hosts dynamic economy, youthful population and rising strategic clout in Asia and beyond. The president also showed evidence of the evolution of his thinking following his Democratic Partys electoral defeat back in the United States. It requires me to make some mid-course corrections and adjustments, Obama said, vowing however to stick to the beliefs and ideas that would move America forward, including investing in education, clean energy and infrastructure. Obama started his India visit, the first stop of a four-nation Asian tour, on Saturday, unveiling 10 billion dollars in trade deals designed to bankroll US jobs after voters handed him a severe rebuke in mid-term elections Tuesday. Commercial agreements included a 7.7-billion-dollar contract for Boeing to supply 30 of its 737 aircraft to Indias SpiceJet airline. Security is tight for Obamas visit. Thousands of Indian and US security personnel are deployed and a US naval warship is on patrol in the waters off the coast of the city. Obama regretted that the great religion of Islam has been distorted by a few hardliners to justify violence towards innocent people and called for isolating these elements. Obama also said that people would have to fundamentally reject the notion that violence is the way to mediate differences among them. I think all of us have to fundamentally reject the notion that violence is the way to mediate our differences, he added. The US president expressed these views when a Muslim student A Ansari lobbed a question asking for his views on 'jihad during his interaction with students of St Xaviers College in Mumbai. I think all of us recognise that this great religion (Islam) in the hands of a few extremists has been distorted to justify violence towards innocent people that is never justified, he said.