His attack on the government at a Congress rally here comes a day after Modi, in his Independence Day address, reached out to Kashmiris, saying abuses and bullets would not resolve their problems but embracing them would.
"He (Modi) has created an environment in Jammu and Kashmir ofhatred and anger, and the only people who benefit from violence and hatred are the Pakistanis," he said.
Claiming that he worked on the J-K issue with Manmohan Singh, who was the prime minister, and leaders like P Chidambaram and Jairam Ramesh silently without any "drama or tamasha", he said their effort of 10 years was "destroyed by Modi in one month".
"We worked for 10 years to bring peace in Kashmir. We did panchayat elections, we did work on employment, we connected thousands of women there to banks. The reason was wewanted peace and harmony in Kashmir," he said.
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"We wanted to embrace the people of Jammu and Kashmir andwe wanted them to embrace us. We wanted peace there, also because when there is peace, Pakistan can do nothing in Jammu and Kashmir... The space for Pakistan to do mischief there closes," he said.
Stressing that a peaceful Jammu and Kashmir was a "worst thing" for Pakistan, Gandhi said what the UPA government did for ten years was "destroyed in one month by Modi".
"I'm telling you this because Mr Narendra Modi's policy has created a space in Jammu and Kashmir for Pakistanis to misbehave," he added.
Hitting out at the Modi government's foreign policy, Gandhi accused the prime minister of alienating India's neighbours and also Russia.
"For the first time in our history, Russia is selling weapons to Pakistan," he said.