In an indirect reference to Pakistan, Prime Minister Narendra Modi asked the BRICS member nations to "isolate supporters and sponsors of terror".
In a meet with the leaders of the BRICS ahead of G20 summit, Modi said "terrorists in South Asia, or anywhere for that matter, do not own banks or weapons factories".
"Clearly, someone funds and arms them, and BRICS must intensify joint efforts not just to fight terror but to coordinate actions to isolate those who are supporters and sponsors of terror, " he said.
In the meet, Modi said terrorism was the primary source of instability and the biggest threat to societies.
He also raised the issue with Australian Prime Minister Malcolm Turnbull on the sidelines of the G20.
"In a very hard - hitting intervention, he said terrorists in South Asia or anywhere for that matter do not own banks or weapons factories, " Indian External Affairs Ministry spokesman Vikas Swarup quoted Modi as saying.
Without directly naming Pakistan, Modi told Turnbull, "Our (India's) neighbourhood, in particular, was suffering from destabilisation effects of terrorism".
He stressed the need to "identify the suppliers, exporters and financiers of terrorism".
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