In another development, New Delhi said economic engagement with Pakistan can only be enhanced in an environment of peace and stability. In a clear message it said that the current strain could impact trade ties with Pakistan.
The remarks by Commerce and Industry Minister Anand Sharma came a day after Prime Minister Manmohan Singh's tough message to Pakistan that it cannot be business as usual in the aftermath of the beheading of an Indian soldier on the LoC last week.
Mr Sharma's comments came ahead of the Annual Partnership Summit to be held in Agra from January 27th.