The fighting has intensified in Pakistan's Swat Valley after the country's Prime Minister Yousuf Raza Gilani called off the peace pact late on Thursday night.
And India reacted to that by stressing the need to contain the Taliban, saying it is a dreaded terrorist organisation.
"We do believe that Pakistan should be contained. It is a dreaded terrorist organisation," said External Affairs Minister Pranab Mukherjee.
Meanwhile, thousands of terrified Pakistanis dodged Taliban roadblocks to flee fighting on Thursday between the army and insurgents in a northwestern valley, streaming into refugee camps and crowding hospitals with their fatigued and hungry children.
According to the United Nations, tens of thousands have fled their homes in recent days from the Swat Valley where a militant-government peace pact collapsed this week.
Recent video shot by Al Jazeera television showed destroyed vehicles and buildings in Buner district.
The exodus adds to more than 500,000 already displaced by fighting elsewhere in Pakistan's volatile border region with Afghanistan.
The violence flared just as Pakistan's embattled President, Asif Ali Zardari, was appealing in Washington for more help to reverse the extension of Taliban-held territory to within 60 miles (100 km) of the capital, Islamabad.
The US has welcomed Pakistan's fresh military action. (With AP inputs)
