"Over the years, our equipment (sale) to Pakistan have been a mix of civilian and military equipment. (The latest decision on F-16 aircraft) is part of a legacy announcement," he said during interaction at the CNN Asia Business Forum organised as part of ongoing 'Make in India' week here.
"The reality is that there are dangerous groups operating within Pakistan," Verma said.
Verma's comments came a day after the Obama administration notified the US Congress of its decision to sell eight F-16 fighter jets to Pakistan worth nearly USD 700 million.
Lauding the Narendra Modi government, Verma said there has been "substantial progress" in India in the last two years.
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Among the challenges before India were those of rapid urbanisation and tackling climate change, he said.
Speaking on the occasion, George Yeo of Kerry Logistics Networks expressed optimism that any future India-China conflict won't get out of control.
"exporter of terrorism", Verma said there has been condemnation of cross-border terrorism from their side.
"The US has been speaking about condemnation of cross-border terrorism which has to end. We want to see that kind of unity in our relations with India. With Pakistan, it is complex, based on cross-border terrorism. With India it is on a different plane," he said.
Asked about the future of Indo-US relations under the new dispensation, he said, "In the coming years, US and India relations will continue as it is today."
"Relations between India and US is on an upward trajectory and irreversible. Indians settled in the US will continue be the natural bridge between the two countries," Verma said.
On the economic front, he said US was the largest trading partner of India with two-way trade hovering at USD 100 billion.
There were 500 US companies in India and 100 Indian companies in the US, he said.
Verma was in the city to attend a seminar on regional connectivity where participants from Nepal, Bangladesh, Myanmar, Bhutan, Sri Lanka and Thailand were present, besides USA and India.
He also said US was ready to share its best practices on dealing with border security to help countries in protecting their citizens.