New Delhi: India on May 26 reacted cautiously to Israel approving a US-backed "roadmap for peace" and accepting for the first time the creation of a Palestinian state, saying it hoped things "move in the right direction".

Israeli Prime Minister Ariel Sharon's Cabinet, despite opposition from several far-right ministers and members of his own Likud party, on May 25 endorsed the plan, a move promptly welcomed by the US as a step forward.

Asked about Israeli government decision, Foreign Secretary Kanwal told reporters that "one should not pick on one development" and added that the Middle East peace process was "very complicated".

"One should keep fingers crossed and hope that things will move in the right direction," he said.

Sibal pointed out that in the past too there had been high hopes and expectations had been raised, but things had collapsed. "So the watchword should be prudence."

PTI