NEW DELHI (Agencies) - Indias government said it was deeply distressed by violence in Occupied Kashmir after the worst day of rioting since a wave of anti-India protests began in the Muslim-majority region in June. In a statement at the end of a special cabinet meeting on Kashmir, the Indian government said it was deeply distressed by the turn of events and appealed for calm. It decided against heeding calls from some in the government to partially lift a 20-year-old army emergency law that is seen as a symbol of injustice by many in Kashmir. The government reiterated its offer of talks to all peaceful groups in Kashmir, which would cover the trust deficit and the governance deficit. It also called an all-party meeting on Wednesday (tomorrow) in New Delhi. We hope that following the all-party meeting it will be able to engage with the people of Jammu and Kashmir and take certain initiatives and measures that will build confidence of people, the statement said. The cabinet, chaired by Indian Prime Minister Manmohan Singh, had been expected to discuss whether to lift the Armed Forces Special Powers Act in four districts of the region, but decided against taking any action. Our Monitoring Desk adds: Voicing concern over the unrest in Occupied Kashmir, Indian PM Manmohan sought to reach out to the people there, saying their grievances have to be addressed and promised talks within the Indian Constitution with those who abjure violence, reports Zee News. As his government weighs options to deal with the situation in Kashmir, Manmohan emphasised on the need for better delivery of services and generating avenues for economic advancement of the people of the state. Unrest in the state of Jammu and Kashmir over the last few weeks is a matter of concern. The youth of Kashmir are our citizens and their grievances have to be addressed, he told top commanders of the armed forces at a conference here. We are willing to talk to every person or group which abjures violence, within the framework of our Constitution, he said. The Indian Premier, however, made no mention of the controversial Armed Forces Special Powers Act (Act), whose withdrawal from the state is being sought by Chief Minister Omar Abdullah. Hailing the security forces for securing the nations interest, apart from disaster mitigation, the Indian Prime Minister said the armed forces deserve the best and assured them of governments support to ensure this. He also assured the armed forces that the country would accord priority to equipment, training and welfare of soldiers and retired defence personnel. Emphasising Indias strategic autonomy, Manmohan said it was an article of faith and India was too large a country to be boxed into any alliance or regional or sub-regional arrangements, whether trade, economic or political. On the global terms, the Indian Prime Minister said, there was a shift of economic and political power to Asia, with the Asia-Pacific region, including the South East Asia needing more attention from India. Noting that some of the toughest challenges lay in Indias neighbourhood, Manmohan said the country would not realise its growth ambitions unless peace and stability was ensured in South Asia. Describing the nations of the Gulf region, West and Central Asia as natural partners, he said India had tangible interests in these regions, among which energy security was most important.