Gen. Rawat was speaking along with other world leaders at Raisina dialogue organised by India's influential think-tank Observer Research Foundation (ORF).
Arguing that terrorism was going to stay in the world as long as states were going to use it against other states, he said it was important to prevent states from using terrorism as a "proxy war".
"The only way to deal with it was what the US did post 9/11," he said, adding that the war against terror was necessary.
However, now a peace deal with Taliban is required, Gen. Rawat said.
"It must be a negotiated peace deal so that the Taliban stops using terrorism," he added. Hinting that the US should maintain its presence in Afghanistan, the CDS said that though Afghan security forces are now equipped to fight back terror groups in Afghanistan but they still need support.
The newly appointed CDS officially confirmed that India has shifted its stance on Taliban. India has traditionally been opposed to the Pakistan-backed Taliban in Afghanistan. Thousands of Afghans were given refuge in India when they fled the country due to oppression and terrorism of the Taliban regime. India is in alignment with the democratically elected government in Kabul that the Taliban remains supported by Pakistan.
(Aarti Tikoo Singh can be reached at aarti.t@.in)
( With inputs from IANS )