He said that though India wants to maintain cordial relations with Pakistan, Islamabad seems not too keen on establishing friendly relations with New Delhi.
Addressing the Hindustan Times Leadership Summit in New Delhi, he
said terrorism in India is not home grown but is externally aided... It is from Pakistan.
"Terrorism in India is fully Pakistan sponsored. Pakistan says non state actors are involved. But is ISI non-state actor. ISI is aiding terrorism," he said.
Mr Singh said Pakistan is not taking initiative to punish those involved in 2008 Mumbai terror attacks as the case in that country was moving at a very slow pace.
"Pakistan is not helping in the judicial process. In fact it is trying to scuttle it," he said.
According to the Home Minister, Dawood has been living in Pakistan and despite many requests, the neighboring country has not handed over him to India.
"When the Pakistan Premier came to India, our Prime Minister told him to hand over Dawood. We are pursuing it. We are trying to build diplomatic pressure... As he is the most wanted criminal... Right now he is along Pakistan-Afghanistan border," he said.
Asked whether India would carry out a "hot pursuit" to nab Dawood, Mr Singh said, "Give us time. Please wait. Strategy cannot be divulged. There is no time frame. But we are trying so that Pakistan hands over Dawood as early as possible. Diplomatic pressure is building up."
On whether India will make efforts to have dialogue with Pakistan, the Home Minister said New Delhi wants friendly relations with not only Pakistan but with all the neighbouring countries as well as others nations across the world.
"There should be efforts from Pakistan side too to maintain cordial relations. We always want friendly relations. But from their side, there should be at least talk of friendship. There should be feeling to make friendship (by Pak)... But I believe, sometime sooner some breakthrough will come," he said.
The Home Minister said even though India wants to maintain cordial relations with its neighbouring countries, sometimes, some neighbours indulge in some acts which need to be protested diplomatically.
When reminded that Pakistan Prime Minister Nawaz Sharif had made his intention clear by announcing that he would like to have talks first with Kashmiri separatists before engaging in dialogue with India, the Home Minister said if Pakistan's stand is clear, then our stand is also clear.
Mr Singh said slain al Qaeda chief Osama Bin Laden was in Pakistan for a long time and he could not have stayed there without ISI's help.
Referring to various internal security challenges, he said the Narendra Modi government would leave no stone unturned to ensure the country's internal security.
"There are internal security problems, external security problems and externally-aided security challenges. We need state governments' cooperation. We are getting help from the state government. To meet the internal security challenges, we will leave no stone unturned," he said.
Asked about the "perception" that the Prime Minister's Office is running the internal security establishment, Mr Singh said it was not the case as Modi has given full independence to all ministries.
However, he quipped "the whole government is run by the Prime Minister. We are working as associates. There is nothing wrong in it. But I have to tell you that the Prime Minister has given full independence to all ministries".
Asked about alleged influence of RSS in the Modi government, Mr Singh said RSS was not an external force and he himself and the Prime Minister came from that organisation.
"RSS is not an external force. I am from RSS. The PM himself is a RSS volunteer since childhood. We are RSS volunteers. As long as we are alive we are with RSS. Since we belong to the RSS, what kind of influence RSS will have on us.
If there (RSS) is a separate identity, if there is a separate ideology, then there is a question of influence. But we belong to RSS," he said.
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