"It is a serious situation. Right from the day this government had been formed and even prior to that, India has taken one step after another honestly trying to improve relations with Pakistan," he said at HT Leadership Summit here.
Prime Minister Narendra Modi took a lot of initiatives including unconventional ones but then the response was Pathankot or Uri attack, prompted by Pakistan, he said.
"This cannot be normal as far as Indo-Pak relationships are concerned. If there are tensions, its for the Pakistan to introspect really why there are tensions," he said.
Asked about impact of change in regime in the US, Jaitley said the relationship between the two country is expected to strengthen further.
"I have not the least doubt that India's relations with the United States would continue to be on the same plank as it was, probably growing and maturing almost by the day," he said.
"This was unusual election as far as the US was concerned. When one world's most powerful democracies through a fair electoral process takes a decision, we have to accept the decision," he added.
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