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In a statement here hours after Sarabjit succumbed to injuries suffered in last week's assault, Singh underlined that the criminals responsible for "the barbaric and murderous attack must be brought to justice".
He said the government will make arrangements to bring 49-year-old Sarabjit's remains home and for his last rites to be conducted in consultation with his family.
"I am deeply saddened by the passing away of Sarabjit Singh. He was a brave son of India who bore his tribulations with valiant fortitude," the Prime Minister said in his condolence message.
"It is particularly regrettable that the government of Pakistan did not heed the pleas of the government of India, Sarabjit's family and of the civil society in India and Pakistan to take a humanitarian view of this case," he said.
He said the nation shares the profound grief of Sarabjits family. "May his soul be granted the peace that he could not enjoy in life," he added.
Sarabjit died of cardiac arrest in a Pakistani hospital in the wee hours today after being comatose for nearly a week following a brutal assault by fellow inmates in a high- security jail.