New York: External Affairs Minister S Jaishankar on Wednesday said that India has no problem talking to Pakistan but it has a problem talking to "Terroristan". He said that Pakistan has created an "entire industry of terrorism" to fuel unrest in Jammu and Kashmir and New Delhi can't talk to a country that sponsors terror.

During an interview to Asia Society Policy Institute's President Kevin Rudd on Tuesday, he said: "they have to accept the model which they have built for themselves, no longer works. You cannot in this day and age, conduct policy using terrorism as a legitimate instrument of statecraft that is at the heart of the issue. We have no problem in talking to Pakistan, we have a problem talking to terroristan."

Jaishankar also stated that Pakistan's reaction on the abrogation of Article 370 reflects its frustration and anger.

Addressing a New York audience at cultural organization Asia Society Tuesday, he said when India decided to revoke Article 370 and bifurcate the state of Jammu and Kashmir into two union territories of Jammu and Kashmir and Ladakh, it drew a reaction from Pakistan and China.

Pakistan downgraded diplomatic relations with India and also expelled Indian High Commissioner after New Delhi revoked the special status given to Jammu and Kashmir on Aug 5

China had voiced "serious concern" over the situation in Kashmir, saying "the parties concerned should exercise restraint and act with caution, especially to avoid actions that unilaterally change the status quo and exacerbate tension."

"For Pakistan, it was a country which has really created an entire industry of terrorism to deal with the Kashmir issue... Who now says that the investments of 70 years are undercut, if this policy succeeds. So their today's reaction of anger and frustration is in many ways because they built an industry over a long period of time," said Jaishnakar.

India on August 5 revoked Article 370 of the Indian Constitution, which gave special status to the state of Jammu and Kashmir. New Delhi's step did not go well with Islamabad which racked up its rhetoric against the former.

Pakistan's leadership, since then, has approached various countries and international organisations for seeking their support on the Kashmir issue. However, the international community has told Pakistan to directly engage in talks with India.

Jaishnakar further said that the revocation of Article 370 of the Constitution was necessary as it had become a 'barrier' and created a sense of alienation which led to separatism in the region.

"What was actually meant to help Kashmir ended up in a way where the bridge became a barrier. It had political and eventually national security consequences. Lack of development, an opportunity created a sense of alienation - alienation to separatism, separatism used for terrorism," he said.

(with inputs from agencies)