The State Department took the step against Salahuddin, who hails from Kashmir, as he had "vowed to block any peaceful resolution to the Kashmir conflict, threatened to train more Kashmiri suicide bombers, and vowed to turn the Kashmir Valley into a graveyard for Indian forces".
The action against the Kashmiri militant group's 71- year-old head, whose original name is Mohammed Yusuf Shah, comes against the backdrop of upsurge in terror activities and recruitment in the Valley.
He is also the head of United Jihad Council, a conglomerate of several terror outfits like LeT and JeM which operate out of Pakistan and Pakistan-occupied Kashmir.
The announcement came just a few hours before Modi's meeting with Trump.
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Following the designation of Salahuddin as a global terrorist, the State Department in a notification said he has committed, or poses a significant risk of committing, acts of terrorism.
India welcomed the US' move and said it vindicated its long-standing position that cross-border terrorism has been behind the disturbances created in Kashmir since last year.
"India welcomes this notification. It underlines also quite strongly that both India and the US face threat of terrorism," Ministry of External Affairs spokesperson Gopal Baglay said here.
"The outfits that Syed Salahuddin leads have perpetuated from the territory of Pakistan and PoK. Cross-border terrorism against India including in the state of J-K for several years. In that sense we would welcome this notification.
"It underlines also quiet strongly the fact the both India and the US face threat of terrorism and they are working together to counter this threat, not in one particular area, but globally because terrorism knows no boundaries," he said.
The US decision significantly came on a day Salahuddin issued a video message calling for a week-long agitation to mark the first death anniversary of Hizb-ul-Mujahideen commander Burhan Wani, who was killed by security forces in an encounter on July 8 last year.
Designations of terrorist individuals and groups expose and isolate organisations and individuals, and result in denial of access to the US financial system.
"Designations can assist or complement the law enforcement actions of other nations," the State Department said.
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