He also charged Pakistan with using terror as an instrument of "state policy".
"Pakistan is mixing terror with religion. Terrorism unfortunately has become their state policy. Terrorism is an enemy of humanity and has no religion," he said at the 'Kargil Parakram Parade' here to mark the supreme sacrifice of the soldiers in the 1999 conflict.
He said Kashmir is an integral part of India and not an "inch" of it will be ceded to the neighbouring country.
"Our neighbour should understand that aiding and abetting terror will not help them. They had an experience in 1971, they should remember that experience and focus on creating peace and prosperity for their people," he said.
Naidu also said Pakistan, which had embarked on the "Kargil misadventure", was now resorting to "diplomatic misadventures" to foment trouble in Kashmir.
"It is time all 'mis-adventurists' realise that India's development story can't be derailed by such 'shoot and scoot' tactics. We are too strong to get irritated and lose our focus," he said, ahead of the Kargil Vijay Diwas on July 26.
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