He said terrorists in Pakistan are "disposable commodity" and Indian Army has been focusing on punishing Pakistan Army posts which often provide cover fire to push terrorists into India.
"Our approach has been to ensure that Pakistan Army feels the pain," he told a press conference, adding the Pakistani side has been feeling the pressure of India's aggressive retaliation.
"Unless Pakistan Army feels the pain, it would continue to send terrorists who are disposable commodities for them. We will continue to destroy the Pak posts pushing the terrorists into India. Pakistan has suffered three-four times higher casualties due to the retaliatory fire," he said.
Gen Rawat said South Kashmir was focus of the Army's counter-terror operations after killing of Hizb-ul-Mujahideen militant Burhan Wani in 2016. But now, the focus will be shifted to areas in North Kashmir, he said.
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"We will call the bluff. If we will have to really confront the Pakistanis, and a task is given to us and the country gives us a task, we are not going to say that we cannot cross the border because they have nuclear weapons. We will have to call their nuclear bluff," he said.
The Army Chief also said it would be premature to assess the impact of US President Donald Trump's decision to put pressure on Pakistan to act against terror groups operating from its soil.
He said India will have to continue its policy of dealing sternly with cross-border terrorism in Jammu and Kashmir, notwithstanding the pressure on Pakistan by the US.
On January 1, President Trump had accused Pakistan of giving nothing to the US but "lies and deceit" and providing "safe haven" to terrorists in return for USD 33 billion aid over the last 15 years, seen as a major policy initiative to pile up pressure on Islamabad to contain terror groups operating from Pakistan's soil.
"I do not think everything is going to be hunky-dory and Pakistan is going to be isolated and it is going to be declared a terrorist state. There are compulsions on the US also to maintain a kind of a relationship with Pakistan and Pakistan understands it," Gen Rawat said.
"It is a step by step process. It is too premature to say that everything is going to be in our favour and the US will do our job," the Army chief said.
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