"Navjot Sidhu has a lot of admirers and followers. He has been a very popular cricketer... He has his fan following. Somebody of that stature, going (to Pakistan) and then there hugging the chief of the Army...an Army about which in India we have very clear feelings," Sitharaman said.
"It certainly has an impact on the soldiers and all the people in the (Defence) Ministry. The public response has also been similar that it demoralises," she added.
"If it demoralises people, I wish Siddhu had avoided. I am not talking about him going (to Pakistan) but more about that singular gesture of hugging the Army chief," Sitharaman said.
Cricketer-turned-politician Navjot Singh Sidhu had been invited for the swearing-in ceremony of Pakistan Prime Minister Imran Khan, who was also a cricketer.
Sidhu also claimed to have brought up the issue of opening the route to Sikh pilgrimage site Kartarpur Saheb with the Pakistan leadership. However, Sidhu has been facing flak from the Bharatiya Janata Party (BJP) and the Shiromani Akali Dal (SAD) for meddling in a bilateral affair.
Union Minister Harsimrat Kaur Badal said on Tuesday: "Shockingly, Navjot Singh Sidhu gave the impression to everyone that it is he who has got it (Kartarpur Saheb route) opened with the Pakistan government. I wonder why he made an unannounced visit to Sushmaji's office yesterday (Monday) when he claims he has already got the corridor opened."
"Rightly, he was reprimanded by the External Affairs Minister for misusing his personal visit clearance and lowering reputation of India as well as causing diplomatic faux pas.
"I ask Rahul Gandhi that a Minister of your party went to an enemy nation, betrayed our people and played with the sentiments of Sikhs. Was this all done with your blessings? Will you take action against him, or are you hand in glove with him?" she added.
BJP Spokesman Sambit Patra, too, slammed Sidhu for running "parallel diplomacy".
He said that while giving Sidhu clearance to visit Pakistan, Sushma Swaraj had cautioned him to "not be hyper" and guard against saying or doing anything that "may lower India's reputation".
Coming to Sidhu's defence, Congress spokesman Randeep Singh Surjewala said the BJP, which Sidhu left two years back, continues to "nurture animosity" against him.
About Sidhu meeting Sushma Swaraj on Monday, Surjewala said that instead of "planting" stories about reprimanding Sidhu, the External Affairs Minister should officially say as to what transpired in the meeting.
"Instead of berating Sidhu, should not the Prime Minister be ensuring that our Sikh brothers and sisters are permitted to have 'darshan' of a place which is important for Sikhs (Kartarpur saheb)?
"Sidhu may have an intent but he does not have the authority to open or not open a corridor. The responsibility finally lies at the doorstep of Prime Minister and the MEA," Surjewala said.
Replying to a question on Jadhav's case, a military spokesman said the Army chief was reviewing the proceedings of the case and would take a decision on the mercy appeal on merit, GeoNews reported.
Radio Pakistan quoted the spokesman as saying that Gen Bajwa's decision would come "at the earliest".
The official said the decision "will be based on justice", the state-run radio reported.
Jadhav was sentenced to death by a Pakistani military court, which later rejected his mercy appeal, on charges of spying and fomenting terrorism in Balochistan.
Pakistan has repeatedly denied requests to provide New Delhi consular access to Jadhav.
The Corps Commanders Conference comes a day after the Indian government abolished Article 370 of the Constitution that granted special status to Jammu and Kashmir.
Pakistan's Ministry of Foreign Affairs has rejected the Indian government's move and said that Jammu and Kashmir was an "internationally recognised disputed territory".
"As the party to this international dispute, Pakistan will exercise all possible options to counter the illegal steps," it said.
Pakistan Foreign Minister Shah Mehmood Qureshi said there was a "threat of genocide and ethnic cleansing in occupied Kashmir" -- a Pakistani euphemism for Indian Jammu and Kashmir -- after India revoked Article 370.
He said Pakistan would appeal to the United Nations, Organisation of Islamic Cooperation, friendly countries and human rights organisations not to remain silent on the issue.
Meanwhile, an emergency meeting of the OIC Kashmir-focused wing has been called in Jeddah on Tuesday to discuss the Kashmir situation.
The session will be attended by representatives from Pakistan, Saudi Arabia, Azerbaijan, Turkey and other member countries, Geo TV reported.
General Bajwa, 58, who was appointed as the Chief of Army Staff by former prime minister Nawaz Sharif in November 2016, was to retire in November, but Prime Minister Imran Khan extended his term for another three years in view of the "regional security environment".
The decision was taken amid fresh tension in India-Pakistan relations and the ongoing Afghan peace talks between the US and the Taliban militants, facilitated by Islamabad.
Asked about the extension of Gen Bajwa's term, Chinese Foreign Ministry spokesman Geng Shuang told a media briefing here that the Pakistan Army chief has made robust contribution to China and Pakistan relations.
We noticed the decision by the Pakistan government. Gen Bajwa is an extraordinary leader of the Pakistani army. He is also an old friend of Chinese government and the army," he said.
He has also made robust contributions to China Pakistan relations. We believe under his leadership, the Pakistan Army will continue to make contributions to upholding Pakistan's sovereignty, security interests and regional peace and stability," Geng said in response to a question from Chinese official media.
Gen Bajwa has promised Beijing to safeguard China's interests in Pakistan under the USD 60 billion China-Pakistan Economic Corridor (CPEC) which will connect China's largest province Xinjiang with Pakistan's Gwadar port in Balochistan.
The Pakistan Army has already raised a battalion and has announced plans to form another battalion to protect Chinese citizens and installations under the CPEC.
Geng's comments backing Khan's decision to extend Gen Bajwa's term came as a surprise as it is rare for Beijing to publicly comment on the appointments of officials by foreign governments, though China and Pakistan are all-weather friends.
Bajwa's extension was sharply criticised by Pakistan's opposition parties which said that it would send a wrong message that the Army is dependent on "one or two individuals".
Observers say that Geng's comments hailing Gen Bajwa's extension was also aimed at reinforcing China's special relationship with Pakistan military establishment.
Gen Bajwa like his predecessors is a frequent visitor to China. But he was the rare Pakistan Army chief who during his visit to Beijing in September last year met Chinese President Xi Jinping.
Prime Minister Khan in his message on Pakistan's Defence and Martyrs Day said his government has launched a proactive diplomatic campaign in the world capitals and at the United Nations to apprise the world community about Kashmir after India revoked Jammu and Kashmir's special status on August 5.
Pakistan observes September 6 as the Defence and Martyrs Day to mark the anniversary of the 1965 war with India.
"For Pakistan, Kashmir stands as its jugular vein. Altering its status poses challenges to Pakistan's security and integrity," Khan said.
"I have also urged upon the international community to seriously consider the safety and security of India's nuclear arsenal... this is an issue that impacts not just the South Asian region but the whole world," he said.
The prime minister said the world community will be responsible for the "catastrophic aftermath" if it fails to pay attention to India's nuclear arsenal.
"I have informed the world that Pakistan does not want war, but at the same time, Pakistan cannot remain oblivious to the challenges posed to its security and integrity," Khan said.
Tensions between India and Pakistan have spiked after New Delhi withdrew Jammu and Kashmir's special status and bifurcated it into two union territories on August 5.
Asserting that abrogation of Article 370 was its internal matter, India has strongly criticised Pakistan for making "irresponsible statements" and provocative anti-India rhetoric over issues internal to it.
Pakistan Army chief Gen. Qamar Javed Bajwa who addressed the main ceremony at the General Headquarters in Rawalpindi said Kashmir was the "unfulfilled agenda" of the completion of Pakistan.
"I want to make it clear that Kashmir is the unfulfilled agenda of the completion of Pakistan. It will remain so until it is a resolved according to the UN resolutions," he said.
Bajwa said Pakistan had won its battle against terrorism and was now fighting to end poverty and backwardness.
"Today there is a better environment of peace in Pakistan and the country gives the message of peace and security to the world," he said.
"Pakistan has fulfilled its responsibilities in the war on terrorism and now responsibility rests with the world community to full its responsibility and reject all forms of terrorism and extremism. Our fight now is against poverty, unemployment and economic backwardness after successfully confronting the menace of terrorism," he said.
The Army chief said Pakistan would continue supporting the peace process in Afghanistan, adding that the complete peace would be possible if all the Afghan groups were part of it.
"Pakistan's support will continue until complete peace is achieved in Afghanistan," he said, amidst reports that the US and the Taliban militants are set to sign a peace deal soon to end the brutal war in the country.
Pesident Arif Alvi in his message said Pakistan will continue to support the people of Kashmir and will raise the issue at all levels and platforms.
"Latest developments in the regional environment, situation in Jammu and Kashmir and the Prime Minister's forthcoming visit to Saudi Arabia and the US to attend UN General Assembly session were discussed during the meeting (on Wednesday)," Dawn news quoted a press release issued by Khan's Office as saying.
During his visit to the US, the Prime Minister will also meet President Donald Trump.
Khan will address the UN General Assembly on September 25 followed by the address of his Indian counterpart Narendra Modi the same day.
Also on Wednesday, Khan called his Swedish counterpart Stefan Lofven and discussed the Kashmir issue.