NEW DELHI, June 24: India has unambiguously admitted that the current military standoff has hit it quite badly as Finance Minister Yashwant Sinha was quoted on Monday urging foreign governments to reconsider their travel restrictions to the country.

The Indo-Asian News Service quoted Sinha as saying in Ranchi that the war-like situation had made a negative impact on foreign investments. In saying so he was apparently echoing President Pervez Musharraf’s remarks to the effect that New Delhi had suffered more as a result of the ongoing tensions with Pakistan.

“The war-like situation between India and Pakistan has made a negative impact on foreign investors,” Sinha was quoted as saying.

He expressed his unhappiness at the travel advisories by countries like the US, Britain and France, asking their nationals to leave in the wake of border tension, the news agency said.

“It is indeed bad. The foreign countries should take back the advice to their citizens to leave India,” said Sinha.”Foreign investors are shying away from investing in India considering the uncertainty prevailing due to the war-like situation.”

Sinha ruled out taking new fiscal measures to mop up resources to meet defence expenses. “We had already made the necessary provisions in the budget.”

He also said there was no chance of India withdrawing security forces from border areas unless Pakistan stopped infiltration completely saying: “There are indications that the infiltration has been reduced to some extent. This is a good development.” “We are keeping a close eye on developments. Unless complete peace prevails in bordering areas, we cannot afford to withdraw our forces,” Sinha said.

Meanwhile, the United States was quoted as appreciating the positive effect of President Musharraf’s commitment to Washington to stop trans-border infiltration into Kashmir.

However, Press Trust of India quoted a US embassy spokesman in New Delhi as saying that Washington had rejected General Musharraf’s claim that he has not promised to permanently end cross-border terrorism.

“Deputy Secretary Armitage was given assurances by President Musharraf on June 6 that ending of infiltration across the Line of Control would be permanent,” a US Embassy spokesman said when asked about General Musharraf’s comments in a Newsweek interview.

“I’ve told President Bush nothing is happening across the Line of Control,” the military ruler had said. “I’m not going to give you an assurance that for years nothing will happen.”

“We have seen positive results from that commitment and we have also seen significant positive steps by India since then,” the spokesman said. “Pakistani actions on the camps are an important follow-up step to keep this process moving forward,” he stressed, according to PTI.

An Indian spokesperson was quoted as describing General Musharraf’s interview as “verbal callisthenics”.

Responding to questions on remarks made by President Musharraf to BBC and Newsweek, foreign ministry spokesperson Nirupama Rao said: “Pakistan has committed itself to fighting terrorism. This is an unambiguous and clear commitment lending itself to no other interpretations”.

“Despite some occasional verbal callisthenics by Pakistan, this is the commitment that remains undiluted,” Rao said.

Asked whether India would reconsider its stand if Pakistan “went back” on its assurances, she said: “If Pakistan is unable to fulfil its pledges and is reneging on its commitments, we will have to take a closer look on what needs to be done and where we go from here”.

The Indian spokesperson said New Delhi expects “action” on the commitments made by Pakistan to stop infiltration and “to dismantle the infrastructure of terrorism in that country. We want Pakistan to abide by its commitments”.

She said: “These are commitments on which Pakistan must deliver if we are to see lasting peace and stability in our region and if we are to see reduction in tensions.”