"If the trial would have been held here, the punishment would have been tougher...We will still try and get him tried in India," Khurshid said. He added India will try and push for Headley's extradition.
"Since we are the ones who lost lives, this is why it would have been better if the trial was held here, but there is a legal system in the US, that we know, and we will still try and hope that he will be extradited," he said.
Headley was sentenced to 35 years in jail by a US court followed by five years of supervised release for his role in plotting the 26/11 Mumbai carnage.
Taking note of Indian disappointment, the US embassy in New Delhi has issued a statement explaining why Headley was spared from the death sentence.
"This decision was taken because of Headley's willingness to cooperate with law enforcement authorities - American, Indian and others - to help bring the perpetrators to justice and prevent other terrorist attacks," the US embassy has said in a statement.