India says all options open to dismantle terror groups

By Nigam Prusty

NEW DELHI (Reuters) - India will keep all options open to dismantle "terror outfits" after the Mumbai attacks, the defence minister said on Wednesday, as Pakistani media reported the surviving gunman from the attack is Pakistani.

India has blamed Pakistan militants for the coordinated strikes in November by 10 gunmen that killed 179 people and have revived tension between the nuclear-armed neighbours that have fought three wars since 1947.

"Even after 26/11 there is no serious attempt to dismantle the terror outfits and that is the major worry," A.K. Antony told reporters in New Delhi, referring to the attacks in India's financial hub.

"We will do everything to prevent this. For that we are examining all possible available options." he said. "What option we are examining I can't tell you now."

The latest statement comes as Indian officials show increasing frustration at what they see as Pakistan's unwillingness to fully investigate the attacks.

Prime Minister Manmohan Singh stepped up a war of words on Tuesday, saying for the first time the assault "must have had the support of some official agencies in Pakistan".

Pakistan has denied any involvement by state agencies and rejected Singh's accusation, saying India was ratcheting up tension and risked destroying all prospects of a serious and objective investigation.

Pakistani Prime Minister Yousaf Raza Gilani said Pakistan had made constructive proposals for cooperation and initiated its own investigation but India was unnecessarily whipping up tension.