"India and Pakistan are neighbours and should live peacefully. But they (Pakistan) have made terrorism their state policy. This is unacceptable. Pakistan should be isolated," Naidu said.
Naidu stressed that despite stray incidents between different communities in India, the Indian society was united due to a common culture.
"Hamara sabka poorvaj ek hai (Hindus, Muslims, Christians and Sikh all have common ancestry)," the minister said at a function here to formally rename Paryavaran Bhavan as 'Deendayal Antyodaya Bhavan'.
Naidu, a senior Bharatiya Janata Party leader, said that the word nation does not denote only the soil but also its people.
Hence, nationalism means all people -- irrespective of their religion, caste, language or region -- should be united, the minister said.
"A terrorist is a terrorist, a corrupt (person) corrupt -- they have no religion," he said.