"India is trying to create an anti-Pakistan Afghanistan," he observed. India has a vision of dominating the region and aims to "create a weak Pakistan," he added.
Musharraf said he understood that India does not seek to take over Pakistan militarily, but it wants to dominate Pakistan in the area of foreign policy, economic policy, trade and commerce.
"That is how you suppress, you control or dominate another country," he added. Musharraf said Afghanistan sends its intelligence staff, diplomats and soldiers to India where they are "indoctrinated against Pakistan," something he said India must stop and the United States should be concerned about.
"In Afghanistan, there is some kind of a proxy conflict going on between Pakistan and India," Musharraf told the leadership forum sponsored by the Atlantic media corporation. While he was in power, he said he personally offered Afghanistan free training but "not one man has come to Pakistan for training."
He added: "India must stop it.I would say that the United States needs to understand Pakistan's sensitivities. I see there is a lack of concern for Pakistan's sensitivities."
Musharraf spoke after Afghan President Hamid Karzai signed a "strategic partnership" with India on Tuesday.
The partnership -- the first such pact between Afghanistan and another country -- deepens already friendly Delhi-Kabul ties and aims to boost trade, security and cultural links between the countries.
Fearful of encirclement by its wealthier neighbor, Pakistan has long focused on Afghanistan -- arming Islamist warlords against the Soviets in the 1980s, backing the Taliban in the 1990s and hedging its bets in the 2000s. The former president said he was convinced that Osama bin Laden hiding in Abbottabad, Pakistan, was not about the Pakistan government's complicity, but a "not complicity, it was a terrible case of negligence which must be explained by Pakistan."
If bin Laden was hiding there for five years, he said, it would have included two years during his rule, "so whether anyone in this hall believes it or not, I did not know. So therefore, I am 500 percent sure that I didn't know so, therefore, there was no complicity."
He also noted that locals said they did not know bin Laden was hiding out in the Abbotabad compound.
Musharraf felt that the worsening US-Pakistan relationship might be because of the lack of a personal relationship between the leaders of both countries.
He said that personal relationships with former US President George Bush and former Secretary of State Colin Powell helped ease tensions. He recalled that Powell said to him, "Let's talk general to general," which resulted "in straight upright talking" that resolved issues.
"I wonder whether that exists now, that understanding, that mutual confidence," Musharraf said. "Maybe it is not there and, therefore, yes, there is a total breakdown of confidence and that is what is harming the relationship."
