The court had delayed a decision on whether to accept his confession and guilty plea, with prosecutors arguing that his statement was incomplete and accusing him of seeking clemency. In response, Kasab said he was willing to be hanged for his actions.
Judge M.L. Tahiliyani decided Thursday to accept Kasab's confession, but ordered the trial to continue because the accused did not address all 86 charges against him.
"The trial will proceed," he said.
Kasab's confession linked the attack to a shadowy but well-organized group in Pakistan. The statement bolstered India's charges that terrorist groups across the border were behind the well-planned attack and that Pakistan is not doing enough to clamp down on them.
Chief Prosecutor Ujjwal Nikam had tried to get Kasab's confession thrown out, saying it was not complete or accurate.
Kasab admitted spraying gunfire into the crowd at Mumbai's main train station, and described in detail a network of training camps and safe houses across Pakistan, giving the names of four men he said were his handlers.
He denied killing four Mumbai policemen whose deaths remain touchstones of grief and anger in India.
Pakistan Foreign Minister Shah Mahmood Qureshi told The Associated Press on Wednesday that Islamabad was waiting for copies of the confession, but that it would not impede ongoing efforts at dialogue between the two nuclear-armed neighbors.
The court has issued arrest warrants for 22 Pakistanis accused of conspiring in the attack.
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