Manmohan Singh made the comments during a joint press conference with President Mahmoud Abbas, who is currently visiting the country for three days.
"India has played an active role in supporting the efforts of the state of Palestine to secure full member ship status at UNESCO," Singh said.
"We will continue to support Palestine’s full and equal membership at the United Nations," he added.
Abbas will inaugurate a new Palestinian embassy building in India, Singh said, adding that the Indian government would donate $10 million to the Palestinian Authority's budget.
Abbas thanked the Indian premier and cited Mahatma Gandhi's condemnation of events in Palestine in 1938.
"In 1938, our and your great leader Mahatma Gandhi wrote to Professor Martin Bauber: 'What is going on in Palestine today cannot be justified by any moral code of conduct,'" Abbas said.
"What is going on in Palestine today, 2012, still cannot be justified by any moral code of conduct," the president added, referring to illegal settlement activity, settler violence, attacks on mosques and churches, and policies in occupied East Jerusalem.
Abbas and the Indian premier also signed three agreements to build schools in Abu Dis and Nablus, and to provide training for Palestinians in the field of high-technology.
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