Ms Sitharaman, while speaking at a book release function in Delhi, said India is complying with nuclear non-proliferation regulations despite not being a signatory to the non-proliferation treaty (NPT).
"We are signing nuclear treaties as a commitment to non-proliferation and are not supportive of illegal spread," she said.
"Unlike some of our neighbours, India does not believe in dirty bombs, we take non-proliferation very seriously," she said.
Ms Sitharaman also said infiltration bids from across the border with Pakistan have not come down.
On the issue of rising terrorism-related incidents in Kashmir, the minister said the government is working with the state government to deal with the issue.
Efforts are going on and government is engaged, she said, referring to the visits of the centre's interlocutor who has been engaging with different sections of people in the state.
She said India does not want an escalation in tensions, but it is for Pakistan to prove that their territory is not being used for terrorism.
Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.