India is to recall its High Commissioner from Pakistan and cut road and rail links with its neighbour, following Islamabad's failure to move against two Muslim militant groups which New Delhi holds responsible for attacking its parliament last week.
This is the third time India has withdrawn its ambassador prior to war breaking out: in 1965 over disputed Kashmir state and in 1971 over independence for East Pakistan that became Bangladesh. The Indian High Commissioner was not recalled during the 11-week long border war in 1999 in Kashmir's mountainous Kargil region in which 1,200 soldiers died.
"This is just the starting point of our retaliation against Pakistan for attacking parliament," the government spokesman, Mr Vijay Kumar Malhotra, said. "This is our fight and we will fight it ourselves in whatever way we consider fit," he added.
"India must extinguish all embers of terrorism," the Information Minister, Mr Sushma Swaraj said, adding that war was India's last resort.
Tensions between the two nuclear rivals spiralled after India blamed the Pakistani secret service for launching the December 13th attack on parliament in which 14 people, comprising the five assailants and nine security personnel, died. India also declared that it was keeping "all options open" amid calls from hard-line MPs for military reprisals, including strikes against alleged terrorist training camps in Pakistan-controlled Kashmir.
India has moved its strike formations, including tanks, mechanised infantry columns and artillery to the common border with Pakistan. The army has commandeered trucks and special trains to ferry troops across the country to the northern and western frontiers. All military personnel leave has been cancelled and forces along the border have been placed on high alert.
Pakistan has similarly amassed troops and fortified its defences in anticipation of an Indian attack and warned that it would give a "befitting response" to any act of "military adventurism" by India.
"Since the attack on parliament, we have seen no attempt on Pakistan's part to take action against the organisations involved," the Foreign Ministry spokeswoman, Ms Nirupama Rao said.
In view of Pakistan's complete lack of concern and its continued promotion of cross-border terrorism, India had decided to recall its High Commissioner, Mr Satish Nambiar, from Islamabad, she declared.
From January 1st, the 25-year- old Samjuhta Express rail link between Delhi and the Pakistani border city of Lahore and the bus service between the two cities that began in 1999 will be terminated, Ms Rao said.
The 10-day delay in breaking travel links is to allow citizens of both countries to get home.
India issued a diplomatic "demarche" to Pakistan a week ago, demanding that Islamabad ban Kashmiri militant groups Jaish-e-Mohammadi (Army of Mohammad) and Lashkar-e-Taiba (Army of the Pure) that it holds responsible for the attack on parliament, arrest their leaders and freeze their assets.
Pakistan and the two militant groups have denied any involvement and Islamabad has offered a joint investigation into the incident, an offer that India has refused.
Pakistani officials said Delhi was trying to discredit Islamabad and claimed that the attack was the work of Indian security agencies.
The US, China and Russia have all appealed to India and Pakistan for restraint amid concerns that mounting tension could spark a full-fledged conflict between the nuclear-capable rivals.
India and Pakistan have fought three full-scale wars since independence 54 years ago and a border war in 1999.
President Bush, meanwhile, has banned Lashkar-e-Taiba, calling it a "stateless sponsor of terrorism" that was trying to undermine the Pakistani President, Mr Pervez Musharraf, and bilateral ties between the neighbours.
But Indian MPs said this was not enough.
By declining to take direct action against Pakistan, which Washington needs to help consolidate its hold over Afghanistan, the US is pursuing a "dual policy" in dealing with terrorism, they claim.