
"Nobody is talking about military action," Mukherjee said Tuesday, according to the Press Trust of India news agency.
However, he later appeared to backtrack, telling the NDTV news channel that "every sovereign country has the right to protect its territorial integrity and take appropriate action."
Pakistan also seemed to be taking initial steps to comply.
Pakistani Foreign Minister Shah Mehmood Qureshi offered to establish a joint investigation with India and said the government wanted to continue a peace process begun in 2004 and broadened this year to include cooperation in fighting terrorism.
"We are examining it, we are considering it, and after consultation we will give a reply," Qureshi said of the list. "We do not want to do anything which could fan tension. We want to de-escalate matters."
He said he had told India, "We will fully cooperate with you, so that we can reach the bottom."
Topping India's list is Dawood Ibrahim, a powerful gangster and the alleged mastermind of 1993 Mumbai bombings, India's most deadly, which killed 257 people. Ibrahim fled to Dubai and later to Karachi. Pakistan has denied he is now in the country.
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Associated Press writers Ravi Nessman in Mumbai, Ashok Sharma in New Delhi, Asif Shahzad in Islamabad, Pakistan, Anne Gearan in Brussels, Belgium, and Jennifer Loven in Washington contributed to this report.
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