This was conveyed by Home Minister Rajnath Singh to Bahraini Interior Minister Rashid bin Abdullah Al Khalifa during a bilateral meeting here.
Bahrain is a key member of the Organisation of the Islamic Conference in which Pakistan is also a member.
Singh, who is on a three-day visit to the Gulf country, apprised Khalifa about Islamabad's open support and participation to glorify slain Hizbul Mujahideen militant Burhan Wani in Pakistan, saying it indicates continued free movement that terrorists and their supporters enjoy there.
Pakistan is a country which refuses to give up use of terrorism as an instrument of state policy, he said.
The Home Minister raised the issue of the arrest in July of Pakistani terrorist Bahadur Ali, who was armed and trained in LeT camps and then exfiltrated into Jammu and Kashmir with instructions to mingle in crowds for throwing grenades at security forces.
"Since there is no change in Pakistan's approach of sponsoring terrorism we cannot take at face value any of the assurances that Pakistan provides in regard to stopping terrorism," Singh is said to have conveyed to his Bahraini counterpart.
The Home Minister conveyed that there is complete political consensus in India on reaching out to the people of Jammu and Kashmir and substantial progress has been made in this regard.
Singh also told Khalifa about the lack of progress in the investigation into the Pathankot airbase terrorist attack and on the Mumbai terror attack trials in Pakistan.
bin Hamad Al Khalifa at Gudaibiya Palace and discussed various bilateral issues.
Singh will meet Bahrain King Hamad bin Isa Al Khalifa, Prime Minister Khalifa bin Salman Al Khalifa.
Addressing the Indian community last night, the Home Minister said terrorism is a global problem and the international community must join hands to root out the menace.
(Reopens FGN 8)
The Home Minister said both India and Bahrain are vulnerable to the scourge of terrorism and there were extensive discussions about the meance during his talks with Interior Minister of Bahrain.
Singh said terrorism should be dealt with in a comprehensive manner and segmented and partial approaches as adopted by some of the countries have been unsuccessful in countering terrorism.
He thanked the Bahraini leadership for condemning the recent terrorist attack in Uri in September and the Pathankot airbase attack in January this year, an official release said.
He said it is a matter of satisfaction that the world opinion is with India in its resolution to dismantle the launching pads of terrorism from across the border.
The Home Minister said signing of agreement for cooperation in combating international terrorism, transnational organised crime and trafficking in illicit drugs, narcotic and psychotropic substances and precursor chemicals has laid strong foundation for enhanced security and counter-terrorism cooperation between the two countries.
He said India would like to enhance ties with Bahraini defence and security establishment.
Singh said India is keen to strengthen trade and investment ties with Bahrain and avail of the strategic location of Bahrain as a "gateway" to the GCC market.
The Home Minister said the presence of a large Indian community in Bahrain constitutes an important link between the two countries. Indians are the largest expatriate community in Bahrain.
He thanked the Bahraini authorities for launching the 'Little India in Bahrain'. This is a praiseworthy gesture towards India and Indian community and will promote Indian culture in Bahrain, he said.
Singh said Bahrain had supported India on many occasions and India will reciprocate in the same manner, more than what Bahrain has given to India.
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