He said the perpetrators of attacks on Indian soil - in Mumbai in 2008 and at an airbase in Punjab last January - should be brought to justice. "United States continues to support all efforts to bring the perpetrators of Mumbai and the Pathankot attacks to justice and we can not and will not make distinction between good and bad terrorism", Kerry said.
Mr Kerry, who arrived in India on Monday for a three-day visit, will co-chair the meet with senior officials from both countries.
Swaraj said India remained ready to open discussions with Pakistan but that such dialogue was hard while India remains a target of Pakistan-based groups.
Please Wait while comments are loading. Cooperation in Standards is one of the 4 work streams identified under S&CD Commercial Track by India and US.
Earlier, Swaraj said she hoped the next USA president would continue the dialogue that also seeks input from companies, which this year included e-commerce giant Amazon and wireless technology firm Qualcomm.
The two-way trade between the countries stood at about Dollars 109 billion previous year.
"This would spur defence industry collaboration between India and the U.S. and help India play the desired role as a net provider of security in the region", she said. "There was meeting of minds between the two sides on the issue of terrorism", she added.
In Tuesday's meeting, Sushma Swaraj also thanked the USA for its continued support for India's membership in the Nuclear Suppliers Group (NSG) and a permanent seat in the UN Security Council.
India and the United States on Tuesday agreed to move forward on building six nuclear reactors and discussed ways to enhance cooperation in the field of atomic power and space.
"It is vital that Pakistan join with other nations in fighting this challenge", Kerry told a news conference, saying he had been in touch with Pakistan's civilian and military leaders on terrorism and noting progress in counter-terrorism operations in the west of the country.
India is looking forward to the S & CD for healthy discussions between the business and government of both sides which are likely to lay the roadmap for much stronger partnership between the two largest democracies. "India and the United States are more deeply engaged on more important issues than at any time in the history of our relationship".
The decision was taken at the India-US annual strategic and commercial dialogue in the national capital.
The new India-US framework is aimed at stepping up bilateral cooperation in identifying, coordinating, sharing and implementing cyber security best practices. Swaraj said that both the countries have agreed to scale up collaboration in clean energy and to "quickly" operationalise the different initiatives announced by Prime Minister Narendra Modi.