India's prime minister says Pakistan's leader has kept none of his promises over the past six months.
Prime Minister Vajpayee says cross-border infiltration by militants and violence in Kashmir has increased.
He says Pakistan is still allowing terrorist camps to operate on its territory.
"Terrorist camps continue across our border," the prime minister told an Asian security conference.
He rejected the Pakistan government's denial that any such camps exist.
"On January 12, the president of Pakistan promised no organisation would be allowed to indulge in terrorism in the name of Kashmir," Vajpayee said.
"We have seen in the following months that cross-border infiltration has increased, violence in Kashmir has continued unabated and terrorist camps continue to exist across our border."
Vajpayee's speech followed one by Pakistani President General Pervez Musharraf.
Musharraf blamed five decades of South Asian conflict on India's refusal to let the Kashmiri people decide which country they want to join.
"The people of South Asia continue to play a heavy price for the refusal by India to resolve the Kashmir dispute in accordance with resolutions of the United Nations and the wishes of the Kashmiri people," Musharraf said.
He went on to say: "For the past several months, tension along our border has been stirring a deep fear of conflict. We do not want war. If war is imposed on us, we will defend ourselves with the utmost resolution."