General Rawat also asserted that there will be no let up in the operations against terrorists in Kashmir.
"Operations in Kashmir are going on continuously and we are trying to bring an improvement in the situation in the Valley. Such operations will go on," General Rawat told reporters at the sidelines of a ceremony at Suratgarh military station.
The security forces in Jammu and Kashmir have eliminated over 200 terrorists this year, the highest since 2010.
Reacting tn Musharraf's statement welcoming an alliance with terrorist Hafiz Saeed for the 2018 general election in Pakistan, General Rawat said that it was for the neighbouring country to decide how it deals with terrorist organisations.
"If they want to come into the system then why not the terrorist organisations which are present this (Indian) side participate and be part of the electoral process. How the neighbouring country deals with terrorist organisations is their matter but we will keep raising this," General Rawat said.
We do not want that such organisations are promoted, he added.
While rejecting that there was a threat from China, the Army chief said that there existed a mechanism to deal with matters that arose out of differences regarding border perception.
"We keep on the dialogues and discussions. Our boundary perceptions are different and tensions and ups and downs happen, but we have a mechanism to deal with such matters," he said.
The government had cut the educational expenses of children of martyrs and capped it at Rs 10,000 per month and the matter will be discussed with the Centre, he said.
General Rawat was at the Suratgarh military station to present the President's Standard to three regiments.
The Army chief presented the Standard to 87 Armoured regiment, 47 Armoured regiment and 10 Armoured regiment after a mounted parade attended by southwestern Army commander Lieutenant General Cherish Mathson, Lieutenant General P C Thimmaya, general officer commanding of Chetak corps, and other officers.
The chief hosts of the event were the colonels of the three Armoured regiments, Major General Vinod Sharma, Major General SS Mahal and Major General Kulpreet Singh, according to defence spokesperson Lieutenant Colonel Manish Ojha.
A formation of T-72 main battle tanks, the mainstay of Indian Armoured Corps, displaying the might of the Army was commanded by Brigadier Praveen Chabbra, commander of the Sand Viper brigade with regiment contingent commanded by respective commanding officers.
The honour was bestowed upon the three Armoured regiments in due recognition of the dedicated and meritorious service rendered by them since raising, more than three decades back.