The White House backed India's right to defend itself as with any other country, in view of the recent surgical strike but advised caution given the heavy militarisation between the two neighbours.
It also said that that the US is making every effort to ensure that India become a member of the Nuclear Suppliers Group (NSG) by the end of this year.
"It (Uri) was a clear case of cross-border terrorism. We condemned this act of terrorism. It was a horrific attack. Every country has a right to self defence. But in a heavily militarised relationship that has also experienced three wars, there is indeed a need for caution and restraint," he said responding to a question on the Uri attack.
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India and Pakistan have a "friction-filled relationship" and they have not found a way to overcome that, he said.
Last week, Lavoy met the two special envoys of Pakistan Prime Minister Nawaz Sharif on Kashmir.
The two Pakistani envoys in their public meetings had linked peace in Afghanistan to resolving the Kashmir issue.
"We certainly do not believe that the situation in Afghanistan is linked with Kashmir," the top White House official said.
"In 2016 India ought to join the NSG," he said and referred to the commitment made by the US in this regard.
India becoming a member of NSG, he argued would exhibit New Delhi's new leadership in non-proliferation.
"Every effort is being made to ensure India ought to join NSG this year," Lavoy said to a question.