Talking tough on the issue of cross-border terrorism, India on Wednesday made it clear to Pakistan that such acts will affect the ongoing peace process even as the two sides agreed on a slew of confidence-building measures to enhance people-to-people contact.

"Some steps have been taken by Pakistan against terrorism but these are not enough and more needs to be done," Foreign Secretary Shyam Saran told reporters at the end of two-day talks with his Pakistani counterpart Riaz Mohammad Khan.

The two sides also agreed on early operationalisation of the bus service between Poonch and Rawalkot, and a truck service on Muzaffarabad-Srinagar route for trade in permitted goods, as soon as the infrastructure damaged during the devastating earthquake in October last year was restored.

Complete Coverage: Indo-Pak Peace Talks