On the border standoff with China in Dokalam, he said the government has already made its position clear.
"The BJP government is effectively tackling the Kashmir issue and good results have come in the last two-three months. The Indian government is dealing with separatists and terrorists in all seriousness. I think we are on the right track," Shah told reporters here.
The BJP chief's comments come against the backdrop of a number of terrorists being killed by security forces in Jammu and Kashmir in the last few months.
India and China have been locked in a standoff in Dokalam since June 16 after Chinese troops began constructing a road near the Bhutan trijunction.
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Bhutan has protested to China, saying the area belonged to it and accused Beijing of violating agreements that aim to maintain the status quo until the boundary dispute is resolved. India says the Chinese action to construct the road was unilateral and changes the status quo.
"For the first time after Independence, our valiant soldiers entered the Pakistan-occupied Kashmir (PoK) and taught the terrorists a lesson. They avenged the death of our brave soldiers," Shah added.
Under the leadership of Prime Minister Narendra Modi, India's stature has grown in the comity of nations, the newly elected Rajya Sabha MP said.
Shah arrived here yesterday on a three-day visit to Madhya Pradesh for meetings with the BJP workers and office- bearers, besides participating in various programmes as part of his 110-day nationwide tour.