Indian Prime Minister Mr Atal Behari Vajpayee has accused Pakistan of being a terrorist state in a speech marking his coalition government's third year in power.
"Our neighbour is assuming the role of a terrorist state," Mr Vajpayee told a rally attended by politicians from his National Democratic Alliance coalition.
"It does not hesitate to send fidayeen [suicide squads] into our country across the border to kill innocent women and children. We have to destroy this demon".
Mr Vajpayee's strong words came a day after India said it had begun pulling back its soldiers from its border with Pakistan, ending the longest peacetime deployment in India's history after a 10-month military standoff.
The two countries massed nearly a million troops along their border after a deadly raid on India's parliament last December that New Delhi blamed on Pakistan-based militants fighting its rule in Muslim-majority Jammu and Kashmir.
Pakistan denies giving military support to the guerrillas ut says it gives moral and diplomatic backing to what it calls the freedom struggle of the Kashmiri people.