Speaking to TV news channel, Rao said India was watching all these developments with "great concern" in Kashmir.
Foreign Secretary demanded for more efforts should be done by Pakistan.
Rao said, "Terrorism directed against India continues from territory under Pakistan control and from Pakistan. Look at what has been happening in Srinagar over the last few weeks."
"All the events you have seen over the last few days basically point to the basic and undeniable fact that the infrastructure of terrorism which operates out of Pakistan and territory under Pakistan control has not been dismantled," she said.
She further said, "I think the experience over the last two decades would make it very clear to us that this has been an instrument of state policy which has been pursued by agencies within Pakistan."
Rao was responding to a question when asked if the groups, involved in carrying out attacks in Kashmir, were getting assistance or support from Pakistani establishment or state.