Terming Pakistan as a "state in decline, exporting terrorism", Army Chief General Deepak Kapoor has said the Mumbai terror strikes have exposed the neighbouring country's complicity.

"Mumbai terror attack has exposed Pakistan's complicity. The hatred for India is so deeply ingrained in the Pakistani psyche that it fails to see the benefits of cooperation with India," Kapoor said, delivering the Gen B C Joshi memorial lecture at the Department of Defence Studies at Pune University on Wednesday.

He also pointed at the increased infiltration into Jammu and Kashmir from across the border this year.

Expressing concern over proliferation of nuclear technology from China to Pakistan, Gen Kapoor said India needs to take note of the implications of increased infrastructure in Tibet.

"We need to take note of the likely implications of the improvement of infrastructure in Tibet, rapid modernisation of armed forces as well as strategic initiatives in the Bay of Bengal and Indian Ocean region which could impact our security calculus in the region," he said.

He, however, said the situation along the Chinese border had generally been peaceful notwithstanding the media reports.

On the naxalite menace, he said it was primarily a "socio-economic" problem, adding the Army was nevertheless, committed to assist the affected states in the fight against insurgency.