LeT, it said, "continued to operate, train, rally, and fundraise in Pakistan during the past year".
In 2013, Indian sources continued to attribute violence and deaths in Jammu and Kashmir to transnational terrorist groups that India alleges are backed by Pakistan, the report said.
"Continued allegations of violations of the Line of Control between India and Pakistan (the border along Jammu and Kashmir), Pakistan's failure to bring the perpetrators of the 2008 Mumbai attacks to justice, and activities of Pakistan-based terrorist groups remained serious concerns for the Indian government," it said.
"Afghan Taliban and HQN leadership and facilitation networks continued to find safe haven in Pakistan, and Pakistani authorities did not take significant military or law enforcement action against these groups," it said.
The report cited the National Consortium for the Study of Terrorism and Responses to Terrorism (START), to say that about 400 people were killed as a result of terrorist attacks in India in 2013.
"This figure is somewhat higher than in 2012, demonstrating that India remains subject to violent terrorist attacks and continued to be one of the most persistently targeted countries by transnational and domestic terrorist groups."
The US and India maintained counterterrorism capacity building efforts and cooperation, the report said.
