Pakistan should vacate Indian territory under its "illegal" occupation instead of "spreading lies", New Delhi said on Tuesday hitting out at Islamabad for its reaction to Prime Minister Narendra Modi's remarks on Jammu and Kashmir during a podcast.

External Affairs Ministry spokesperson Randhir Jaiswal said the world knows that the real issue in Jammu and Kashmir is Pakistan's "active promotion and sponsorship" of cross-border terrorism.

PM Modi during the podcast with Lex Fridman said "every attempt to foster peace with Pakistan was met with hostility and betrayal" and that he hoped that "wisdom would prevail on the leadership in Islamabad to improve bilateral ties".

On Monday, Pakistan rejected the remarks as "misleading and one-sided".

"We note that Pakistan has once again made some comments about the Indian Union Territory of Jammu and Kashmir," Jaiswal said.

"The world knows that the real issue is Pakistan's active promotion and sponsorship of cross-border terrorism. In fact this is the biggest roadblock to peace and security in the region," he said.

"Instead of spreading lies, Pakistan should vacate Indian territory under its illegal and forcible occupation," Jaiswal added.

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