The U.S. State Department said on Sunday Washington was in touch with both India and Pakistan while urging them to work towards what it called a "responsible solution" as tensions have risen between the two Asian nations following a recent Islamist militant attack in Kashmir.

As world powers face multiple crises, the one set off by a terror attack in Kashmir is getting scant attention or help in de-escalating between nuclear-armed neighbors.

The suspension is among several steps India has taken against Pakistan, accusing it of backing cross-border terrorism - a charge Islamabad flatly denies. It has also hit back with reciprocal measures against Delhi, and said stopping water flow "will be considered as an Act of War".