"The neighbouring country has lost the strength to fight a conventional war, but continues to engage in the proxy war of terrorism," he said while addressing troops of Army and the Indian Air Force on his maiden trip to Leh and Ladakh.
This is the first sharp attack on Pakistan by Modi after assuming office over two months back and comes in the midst of his peace initiatives. Modi had invited Pakistan Prime Minister Nawaz Sharif and other SAARC leaders for his swearing-in on May 26.
His remarks came close on the heels of India's mounting concerns over repeated ceasefire violations by Pakistan and increasing number of militant attacks in Kashmir, the latest carried out last night on a BSF convoy at Pampore in South Kashmir's Pulwama district, leaving eight personnel including an officer injured.
The Prime Minister said the Indian armed forces were suffering more casualties from terrorism than from war.
Noting that this is a global problem, the Prime Minister said all humanitarian forces of the world should unite to fight it.
"India is committed to strengthening and uniting these humanitarian forces," he said.
Modi, who is on a second trip to Jammu and Kashmir in two months, said India was committed to strong armed forces, well-equipped with modern arms and technology.
The Prime Minister later flew to Kargil where he held out the assurance that his government was committed to the welfare of displaced Kashmiri Pandits, refugees from West Pakistan and kin of those killed in terrorist violence.

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"See the condition of Jammu and Kashmir where 20 percent of the population is displaced. We want to settle these displaced people and give them opportunity of their livelihood," Modi said while inaugurating the 44 MW Chutak hydro-power project.
The Prime Minister said the Centre was committed to include this 20 percent population becoming a party in changing the destiny of Jammu and Kashmir.
"More than 2 lakh displaced are refugees from West Pakistan, over one lakh displaced are...more than 4 lakh are Kashmiri Pandits over eight to ten lakh are those who lost their families in terrorist attacks. These are also our brothers and sisters and we have to think about them," he said.
He is the first Prime Minister to visit the sensitive Kargil region since the conflict in 1999 following Pakistan army's incursion.
India and Pakistan had agreed to a ceasefire in 2003. But despite the truce, firing along the Line of Control has escalated in the last few months.

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