Khan, who is set to become Pakistan's premier, said it was in the interest of both countries that they have good relations and trade ties.
Raking up the Kashmir issue in first address after elections, Khan said it is the "core" issue between the two countries and it should be resolved through talks.
"Kashmiri people have suffered in the last 30 years. We have to resolve the Kashmir issue by sitting across the table. If India will take one step, we are ready to take two. We have to resolve this core issue through dialogue. It will be good for the subcontinent also," he said.
Khan, however, said he was disappointed with the Indian media for portraying him like a "villain".
"I was saddened by the way Indian media projected me in the run up for polls. I felt like I was a Bollywood villain. I am a person who arguably knows the most people in India because of my days in cricket. I want the relations with India to improve, with it we can also resolve the poverty crisis in South East Asia," he said.
He said there has been a blame game between India and Pakistan with New Delhi holding Islamabad responsible for all its problems and Pakistan blaming India for whatever is happening in Balochistan. "This blame game, which brings us back to square one everytime, has to stop," he said.
"This is not how we will grow, and it is detrimental to the sub-continent," he asserted.
Addressing the nation, the Oxford-educated Pasthun said he decided to join politics 22 years back when he saw the collapse of governance system and corruption in Pakistan.
"I entered into politics because I saw the collapse of governance system and (increase in) corruption. When I came, I wanted to make Pakistan what my leader Muhammad Ali Jinnah has dreamt of," he said.
Talking about the incidents of violence and bomb blasts that took place during the election campaign and on the poll day, Khan said: "It was a historic election where people had made sacrifices. I would like to salute the people of Balochistan who came out to vote despite all the threats."
Referring to the governance system at the time of the Prophet Muhammad, the PTI chairman said he plans to set up a Medina-like welfare state in Pakistan where even animals had their rights. "Our policies will be aimed at improving the lives of labourers, farmers and healthcare of children and women."
Speaking about strengthening of institutions, Khan said that accountability will begin from him and his cabinet ministers. "We will make an example and show to the nation that accountability needs to be across the board and establish such institutions which will improve our governance system."
On Afghanistan, Khan said the Afghan people have suffered most in the "war on terror", and before that in the Afghan jihad. He said he wants to have "open borders" reminiscent to those within the European Union. "We want Afghanistan to develop. Their development is linked to Pakistan's development," he said.
While addressing "rigging" allegations, the 65-year-old leader said he will inspect all the constituencies where the opposition parties have raised doubts.
"The election commission doesn't belong to the PTI and the caretaker government was also formed with the consultation of all the political parties. But if you claim that polls in any division were rigged, we will help you and open (inspect) all those constituencies," he said.
Pledging austerity measures for his government, Khan said he will not live in the "lavish" official residence of the prime minister but would prefer a space in the ministers enclave.
"Our government will decide what we will do with PM House. I would be ashamed to live in such a lavish house. We will convert it into an educational institution or something that will benefit people," he said.