"India has sought and continues to move to isolate Pakistan diplomatically and is considering punitive options to raise the cost to Islamabad for its alleged support to cross- border terrorism," Lt Gen Vincent Stewart, Director, Defense Intelligence Agency told members of the powerful Senate Armed Services Committee during a Congressional hearing on worldwide threats.
His statement came a day after Indian Army launched "punitive fire assaults" on Pakistani positions across the Line of Control, inflicting some damage.
Bilateral relations between India and Pakistan worsened following several terrorist attacks in India, he said.
"Continued threat of high level terror attacks in India, violence in Kashmir and bilateral diplomatic recriminations will further strain India-Pakistan ties in 2017," he said.
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"In 2016, Indian and Pakistani forces exchanged some of the heaviest fire in years along the Line of Control in Kashmir, and each expelled a number of the other's diplomats amid growing tension," Stewart said.
"Anti-Pakistan groups probably will respond to this sustained pressure by focusing their efforts against soft targets," he said.
Noting that Pakistan's nuclear stockpile continues to grow, Stewart said the US is concerned that this growth, as well as an evolving doctrine and inherent security issues associated with Pakistan's developing tactical nuclear weapons, presents an enduring risk.
Observing that China has long identified the protection of its sovereignty and territorial integrity as a "core interest," he said in the South China Sea, China has embarked on a multi year, whole-of-government approach to securing sovereignty, principally through maritime law enforcement presence and military patrols.
In 2016, China rejected the international arbitration ruling on its excessive South China Sea claims, built infrastructure at its man made outposts on the Spratly Islands, and for the first time, landed civilian aircraft on its airfields at Fiery Cross Reef, Subi Reef, and Mischief Reef.
Stewart said a key component of PLA strategy in a regional contingency is planning for potential US intervention.
The PLA Rocket Force has given priority to developing and deploying regional ballistic and cruise missiles to expand its conventional strike capabilities against US forces and bases throughout the region.
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