Stating that his Northern Command had adequate forces on the Line of Control (LoC), General KT Parnaik said the army "has a system to graduate from this system (no war, no peace) to a higher form of alert".
The general told a television news channel that he had ordered his forces on the winding LoC to "to remain on alert".
"If provoked gravely, we have an appropriate response in mind."
The general spoke hours after the Indian government made it clear that Pakistan's denials of brutally killing two Indian soldiers near the LoC on January 8 would affect bilateral relations.
He said at the lower level of the Pakistani Army, "there seems to be a sense of arrogance. They want to target our troops anywhere and everywhere".
At Monday's flag meeting between the Indian and Pakistani brigadiers, Gen. Parnaik said the Pakistani representative "had come with a written script".
"The body language was rigid and they were not ready to accept anything (we said). They are in a denial mode."