India on Friday decided not to go ahead with foreign secretary-level talks with Pakistan. The talks were expected to be held in New Delhi next week.
The move comes three days after seven blasts ripped through Mumbai's suburban trains, killing almost 200 people.
There was little likelihood of the talks being held in the current situation, official sources said, adding that any dialogue was possible only in a conducive atmosphere.
Reflecting New Delhi's mood, Foreign Secretary Shyam Saran said: "Co-operation is a two-way street. No cooperation can be one sided... India will do what it has to do."
Saran, however, said the peace process with Pakistan was not off.
Though the talks were not scheduled, the two countries had agreed in January that the dialogue could be held on July 21.
While Pakistan had expressed its readiness for the talks ten days ago, New Delhi had not given any response.
Earlier in the day, Prime Minister Manmohan Singh had made a veiled hint of Pakistan's involvement in Mumbai blasts.
He said it would be 'exceedingly difficult' for India to carry forward the peace process Islamabad did not control terrorist elements operating from its territory.