NEW DELHI, India  -- India is ready for war with Pakistan, its army chief says, and would use its nuclear weapons if its neighbor were to launch a nuclear strike first. 

Speaking at a press conference on Friday, General Sunderajan Padmanabhan reiterated India's position that it wants Pakistan to take concrete steps to end state-sponsored terrorism. 

He said that India won't pull back its troops from the border until it sees a change in Islamabad's position. 

"I'm a man of peace, but if there is war, they will find out this man can bite," Padmanabhan said. 

"To say that there is scope for a limited conventional war is a truism," he said. "Yes, it is there, but it all depends on the circumstances." 

Padmanabhan reiterated India's stance that it will never initiate a nuclear strike against its neighbor. Musharraf has said Pakistan will not initiate a nuclear strike. 

He also warned that the Indian military was capable of hitting rebel bases in Pakistan where it believes insurgent guerillas are trained. 

"We have weapons to reach them and we can ensure civilians are not hurt, we can do all that. But a decision [to do so] can be taken only by the government," the general said. 

Tensions continue
India blames Pakistan for backing Kashmiri militants and terrorist groups who have conducted an ongoing guerrilla action against the Indian government. 

Pakistan has said it is not funding the groups, instead providing moral support for what it calls 'freedom fighters' in the troubled Kashmir state. 

Both India and Pakistan are under intense international pressure to back down and ease the tensions between South Asia's only nuclear powers. 

The news conference was held to explain why India canceled the annual January 15 Army Day celebrations. 

The event, which includes a parade of troops, cannot be held because so many of its troops have been deployed to the border with Pakistan. 

Tensions between the two nuclear neighbors continue to bristle with both countries bolstering border defenses, troops and mobilizing their armed forces. 

Both sides have also laid thousands of landmines along their border and artillery firing along the Line of Control in Kashmir has killed dozens of people

Terror demands
The statements come as Pakistani President Pervez Musharraf works on an expected address on what the government will do to crack down on terrorism. 

But India is talking tough ahead of the speech, with Home Minister L.K. Advani on Thursday saying India would not tolerate "another betrayal" on terrorism by Pakistan. 

Advani, who is in the United States for talks with top U.S. officials, including Secretary of State Colin Powell, has issued Pakistan with four "demands" which he said would prove its sincerity on terrorism. 

The demands are for Pakistan to hand over to India 20 terrorists on a "most wanted" list; close down terrorist training camps and end supply of funds and arms; stop infiltration of arms and men into Jammu and Kashmir and other places in India; and renounce terrorism in all its manifestations

'Peaceful' negotiations
Advani also gave the demands and the list of 20 terrorists to U.S. officials. 

Pakistan has refused to comment on the fresh demands saying only that it remained committed to resolving all outstanding issues with India in the spirit of friendship demonstrated at last week's regional summit in Kathmandu, Nepal. 

"As far as Pakistan is concerned, the spirit remains. We want to resolve all important issues through peaceful negotiations," Pakistan Foreign Office spokesman Aziz Ahmed Khan is quoted in the Hindustan Times as saying. 

"We are ready for talks. I cannot say anything about the other side. We hope they welcome our generous and friendly offer."