"We believe Pakistan's policy of using terror as a policy weapon remains," he was quoted as saying by leading British daily The Times.
India is particularly anxious to prevent a militant attack from disrupting the Commonwealth Games in October, the report said.
"From Pakistan's point of view, it's important to disrupt the Games so you can claim that India is not a safe place," Narayanan said, according to the daily.
He said that Pakistan had done nothing to dismantle militant groups since the Mumbai attacks, and criticised Britain, in particular, for accepting its excuse that such groups were beyond its control.
"The British are still blinkered on this," he said.