However, India has maintained that the Kashmir issue is a bilateral matter with Pakistan, and that there is no scope for a third party mediation.
Asked if his remarks on diplomatic resolution of Doklam stand off indicated any shift in Chinese demand for withdrawal of Indian troops from the area, he said India has already outlined its position on the issue. They wrote, "India has always focussed on deterring Pakistan, but the nuclear modernisation of the country is giving a signal that it is putting more focus on its future strategic relationship with China".
On Wednesday, China had offered to mediate between India and Pakistan on the issue of Kashmir.
In the latest tussle, New Delhi has expressed concerns over China trying to change the status quo on the India- Bhutan-Tibet tri-junction in Doklam area of Sikkim, where Indian troops stopped road construction by Chinese soldiers, said a PTI report.
Baglay said India will continue to use diplomatic channels with China to resolve the standoff. "You are aware that the heart of the matter is cross-border terrorism emanating from a particular country that threatens peace and stability in the country, region, and the world".
The two Asian powers are now engaged in a border standoff over Beijing's One Belt One Road initiative - a trade corridor to connect China with Pakistan - which has run into controversy because of the proposed route plan that includes disputed areas.
"At the same time, it is a long border, of which no part has been agreed upon on the ground".
The two nuclear-armed Asian neighbors must not allow their differences to become disputes, and should ensure their relations were a factor of stability amid global uncertainty, Jaishankar said, summarizing the two points.
India has also developed and tested Agni-4 missiles that are capable of hitting all of China, including Beijing and Shanghai, from northeastern military bases. "Both Pakistan and India are important countries in South Asia and we hope that relevant sides can do more things that are conducive to peace and stability in the region and avoid escalating the tensions".
On June 27, China had accused Indian border guards of crossing into its territory from the state of Sikkim on India's northeastern border with Tibet, complicating an already hard relationship.
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