"Peace and stability is the foundation for social and economic progress. It is our responsibility that we deal effectively with the current challenge of terrorism," Modi said, addressing the Summit of Brazil-Russia-India-China-South Africa (BRICS) here.
With Chinese President Xi Jinping listening, he said: "We must unitedly fight against it (terrorism), without any discrimination between groups, or countries, sponsors or targeted countries.
The remarks assume significance after China blocked India's proposal in a meeting of the UN Sanctions Committee last month seeking action against Pakistan for release of LeT operations commander Lakhvi in the 26/11 trial in violation of a UN resolution.
China, Pakistan's all weather friend, cited lack of sufficient information provided by India.
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Modi, during a meeting with Xi here last evening, voiced concern over this development, amid rejection by the Indian side of the "weak evidence" pretext presented by China.
"Everyone should follow international rules and norms," the Prime Minister said at the BRICS meet which was attended by Russian President Vladimir Putin, Brazilian President Dilma Rousseff and South African President Jacob Zuma besides Xi.
"If UN has to be relevant in the 21st century, it needs to be reformed... Any type of social, economic and challenges can be met only by reforming the UNSC at the earliest," he said.
Referring to the upcoming UN-led Climate Change Summit to be held in France, he said the world body should take some solid decisions on meeting this challenge in its 75th anniversary year.
With regard to BRICS, Modi said that it is an "important pillar" in the world of challenges.