"It (the demilitarisation) can't be done unilaterally," Foreign Minister Natwar Singh told reporters in New Delhi, the Press Trust of India reported.
"After all, they (Pakistan) are in occupation of our areas," he said referring to Indian claim over the entire Himalayan region of Kashmir.
Natwar Singh was responding to President Pervez Musharraf's remarks to Saudi newspaper Arab News at the weekend in which he said he was "for demilitarisation (in Kashmir).
"If they (India) agree to that, we will too," Musharraf's Spokesman Major General Shaukat Sultan quoted him as saying.
The minister made it clear that he has to study the Pakistan president's comments and the context in which they were made before offering any definite views.
"Over-verbalising doesn't help. Every second day there is a statement from that side," he added, referring to Pakistan.
"India expects Pakistan to act against terrorism directed at India," Singh told Musharraf during their 10-minute telephone conversation, a Foreign Office statement said.