External Affairs Minister Pranab Mukherjee has dropped his plans to attend Benazir Bhutto's funeral following a security advisory from Pakistan government.
Pakistan government advised India against sending any delegation for the funeral of Bhutto citing security reasons, sources said.
The Indian government was actively considering dispatching an official delegation led by Mukherjee for the burial at her ancestral village Garhi Khuda Baksh at Larkana near Karachi.
Security at the Indian high commission in Islamabad was also strengthened after Bhutto's assassination in Rawalpindi on Friday evening, the sources said.
India has also temporarily suspended the train and bus services to Pakistan.
The sources said a decision to re-start the transport links with Pakistan will depend on the situation.
Meanwhile, Prime Minister Manmohan Singh sent a condolence message to Bhutto's husband Asif Ali Zardari.