India said today it is recalling its ambassador to Pakistan because of what it said was Islamabad's continuing support of cross-border terrorism.
Foreign Ministry spokeswoman Mr Nirupama Rao told reporters the government had also decided to stop bus and train services between the two countries from January 1st.
India had demanded that Pakistan shut down two Pakistan-based guerrilla groups and arrest their leaders for involvement in last week's attack on the Indian parliament in which 14 people were killed.
"Since the December 13th attack on parliament, we have seen no attempt on the part of Pakistan to take action against the organisations involved", Ms Rao said.
"In view of the complete lack of concern on the part of Pakistan and its continued promotion of cross border terrorism, the government of India has decided to recall its High Commissioner in Islamabad", she said.
Pakistan which denied any involvement in the attack on India's parliament has sought a joint investigation into the incident.