Gen Rawat said the armed forces operating in the state cannot be "status quoist" and must evolve new strategies and tactics to deal with the situation, which he feels is "marginally" better since he took over a year ago.
In an interview to PTI, the Army chief asserted that there was room for ramping up heat on Pakistan to cut flow of cross border terror activities, clearly indicating that the Army will continue its policy of hot pursuit in dealing with militancy.
In October, the government had appointed former Intelligence Bureau chief Dineshwar Sharma as its special representative for a "sustained dialogue" with all stakeholders in J-K.
"When the government appointed an interlocutor, it is with that purpose. He is the government's representative to reach out to the people of Kashmir and see what their grievances are so that those can then be addressed at a political level," the Army chief said.
Gen Rawat said the Army will have to evolve new strategies and new tactics to deal with the situation. At the same time, he said an overall approach was required to deal with the Kashmir issue.
Since beginning of last year, the Army pursued an aggressive anti-terror policy in Jammu and Kashmir and, at the same time, forcefully responded to all ceasefire violations by Pakistani troops along the Line of Control with a tit-for-tat approach.
Gen Rawat said some youths continue to be radicalised and are joining militancy. The Army has been trying to maintain pressure on terror groups, he said.
The Army's aim is to ensure that it continues to maintain the pressure on the terrorists and those fomenting trouble there, Gen Rawat said.
Asked whether the situation in Kashmir has improved since he has taken over as the Army chief a year ago, Gen Rawat said, "I am only seeing a marginal change in situation for the better.
"I do not think it is time to become over confident and start assuming that the situation has been brought under control because infiltration from across the borders will continue."
The LoC has remained volatile in the last year. According to official figures, 860 incidents of ceasefire violations by Pakistani troops were reported in 2017 as against 221 the year before.
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