India has pledged $10 million in aid to the Palestinian Authority and its support for full Palestinian membership to the United Nations.
Indian Prime Minister Manmohan Singh announced the moves following a meeting Tuesday in New Delhi with Palestinian President Mahmoud Abbas.
Singh said support for the Palestinians has been a "cornerstone" of India's foreign policy. He also reiterated India's backing of the Palestinian goal to achieve a sovereign state with East Jerusalem as its capital, living side by side at peace with Israel.
Mr. Abbas said the Palestinians remain committed to a two-state solution with Israel, with the borders that existed before the 1967 Six-Day War.
India has traditionally been one of the Palestinians' strongest diplomatic allies.
A Palestinian bid last year for full U.N. membership failed to win approval in the U.N. Security Council committee that deals with new members.