Holding Pakistan responsible for the attack, in which 17 armymen were killed and 19 injured, he said "since independence, Pakistan has not accepted Jammu and Kashmir as an integral part of India and this is the reason that terror attacks happen in the country with its support."
Jaitley described the terror strike as "a highly condemnable act of cowardice" and a "major challenge" for the forces.
In a series of tweets on microblogging site, the Finance Minister said, "Perpetrators of Uri terror attack shall be punished. My thoughts & prayers are with families of our soldiers injured & martyred."
"Uri terror attack is a highly condemnable act of cowardice. Salute to our soldiers who gave supreme sacrifice to protect the motherland." he said in a tweet.
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Earlier, he had said that security forces will have to work on their strategy to deal with 'fidayeen attacks' by terrorists which have emerged as a "major challenge".
".. Pathankot and Uri (terror attacks) appear to indicate that these (fidayeen attacks) have restarted again. And I think this is a major challenge which I am sure our security forces will gear up to respond," Jaitley told reporters.
He said that in recent years there had been an increasing reliance "on activities like stone throwing agitations" which were instigated from across the border.
Heavily armed militants stormed a battalion headquarters of the Army in North Kashmir's Uri town in the wee hours today, killing 17 jawans and injuring 19 other personnel in the strike in which four ultras were neutralised.