The serial blasts in Mumbai and Srinagar figured in the Union Cabinet meeting on Thursday.
The Cabinet passed a resolution condemning the outrageous terror attacks and asserted that nothing would deter the government from its firm policy to fight the menace till it is wiped out.
Prime Minister Manmohan Singh chaired the meeting.
Security agencies are suspecting Pakistan-based Lashker-e-Tayiba and the banned Students Islamic Movement of India to be behind the terror attacks in Mumbai.
Meeting for the first time after Tuesday's deadly attacks, the Cabinet observed a two-minute silence and passed a resolution, affirming that terrorists and their acts 'will never be allowed' to check the country's march to economic growth and prosperity.
The meeting lauded the spirit of the people of Mumbai and Jammu and Kashmir, which 'demonstrated very emphatically that terrorism cannot succeed'.
The Cabinet expressed 'profound sense of shock and outrage at the series of blasts in Mumbai and Srinagar' which resulted in 'heavy loss of life and suffering', said the resolution passed at the meeting.
'[The Cabinet] condemns in the strongest terms the senseless, inhuman and dastardly attack by terrorists on tourists and the innocent people of this country,' it said. The resolution emphasised the government's 'strong commitment to combat terrorism in all its forms' and said 'nothing will deter us from our firm policy to fight this menace till it is wiped out.'