"Peace across LoC is priority but will not shy away from giving befitting reply to ceasefire violations", said Army Chief Gen Bipin Rawat.
He also paid homage to martyrs and said, "Salute martyrs who sacrificed their lives, our valour is because of them; indebted to them and their families".
Narendra Modi salutes courage of soldiers on Army Day
Meanwhile Prime Minister Narendra Modi also saluted courage of soldiers on Army Day.
"Greetings to all soldiers, veterans & their families on Army Day. We salute the courage & invaluable service of the Indian Army," PM tweeted.
"Indian Army always leads from the front, be it in protecting the sovereignty of our nation or helping citizens during natural disasters," Modi said.
"We remember with great pride all the sacrifices made by our Army. They put their lives at risk so that 125 crore Indians live peacefully," he added.