The Narendra Modi government was also accused by Congress of adopting an "opaque and incoherent" foreign policy and sending "confusing" signals in its dealings with Pakistan.
"This knee-jerk diplomacy shows that they do not have any clear policy towards Pakistan," Congress leader Manish Tewari said.
Congress spokesperson Anand Sharma questioned the Prime Minister for agreeing to hold talks in the first place in the face of "constant provocation" from Pakistan. He dubbed the government's move as "mere theatrics".
"The dialogue was suspended long back. Why was it restored?...Why was India prepared to go to the negotiating table? The government has been following a knee-jerk policy in foreign affairs," he added.
Also Read
BJP, however, welcomed the government's move saying India wants good ties with its neighbours but will not allow any interference in its internal matters.
Peoples Democratic Party (PDP) president Mehbooba Mufti said the decision was a "highly negative" development that casts a shadow on the atmosphere of reconciliation generated by the invitation to Pakistan Premier Nawaz Sharif for the swearing-in ceremony of Modi as prime minister on May 26.
Separatists from Kashmir expressed surprise, saying the decision was "unfortunate" and that it would only ensure that the stand-off between the two countries continued.