New Delhi, Aug 24 - A three-day conclave involving about 120 Indian envoys posted abroad began here Monday with External Affairs Minister S.M. Krishna outlining the country's strategy in dealing with key foreign policy challenges, ranging from terrorism and climate change to global meltdown and soft power projection.

Enunciating the traditional values of India's foreign policy, Krishna set the tone by exhorting diplomats to sharpen their skills in dealing with emerging challenges like climate change, the global financial meltdown and multilateral trade negotiations, said official sources.

He also spoke about giving a fresh impetus to improving India's relations with neighbours and sustaining momentum in ties with major powers like the US, Russia and the European Union, the sources said.

National Security Adviser M.K. Narayanan stressed on India's security strategy, its nuclear posture and a multi-pronged approach to dealing with global terrorism, including linkages with cross-border terror, a festering issue that bedevils India's ties with Pakistan.

The conference of the Indian heads of missions abroad is a closed-door meeting, the first such exercise after the ruling United Progressive Alliance (UPA) coalition returned to power in May.

The last such conclave was held here in December last year against the backdrop of India's diplomatic offensive soon after the 26/11 Mumbai carnage.