MIM chief Asaduddin Owaisi has urged the Indian government to recognise Jerusalem as the Palestinian capital to counter US President Donald Trump's move in recognising the holy city as Israel's capital.
He also demanded that India stop buying weapons from Israel and sever diplomatic ties with the country.
The Member of Parliament said Prime Minister Narendra Modi should not allow Israeli Prime Minister Benjamin Netanyahu to visit India in January.
Owaisi was addressing a massive public meeting organised by Muslim groups here late on Friday night to protest Trump's announcement recognising Jerusalem as the capital of Israel.
A resolution passed at the meeting said Trump's announcement violates all international norms. It demanded that Trump withdraw the decision.
Owaisi said India should take a clear stand in support of Palestinians as the country had historically backed their just cause.
He recalled the words of Mahatma Gandhi that "Palestine belongs to Palestinians just as France belongs to French".
The Hyderabad MP also criticised the silence of Arab and Muslim countries on the repression let loose by Israel in Gaza. He praised President of Turkey, Tayyip Erdogan for taking a bold stand against Israel.
The public meeting demanded that Israel vacate the occupied Arab lands and withdraw to its pre-1967 boundaries.
Eminent religious leaders belonging to all schools of thought and representatives of various Muslim political and socio-religious organisations addressed the massive gathering at Darussalam, the headquarters of Majlis-e-Ittehadul Muslimeen (MIM).
The speakers highlighted the significance of Jerusalem and Al-Aqsa mosque for Islam.
They said Muslims world over have spiritual attachment to the holy place as it was the land of prophets and it was from here that Prophet Mohammed had begun his ascension to Heaven.
The meeting urged the UN Security Council, European Union and the world leaders to implement the UN resolutions asking Israel to withdraw from the occupied lands.
It urged US-friendly countries, including Saudi Arabia, Egypt and Jordan to impress upon the US administration to withdraw its act of illegal recognition of Jerusalem as the capital of Israel.
"The resistance of movement of the Palestinians has to be respected. Israel must be declared a terrorist state. The ummah must be ready to make any sacrifice for the protection of Jerusalem," read the resolution.
The meeting appealed to Muslim countries to impose economic and commercial sanctions on Israel and break their overt or secret diplomatic relations with Israel.
It appealed to people, especially Muslims, to protest in a democratic and peaceful manner to express their concern and submit their memoranda to the US, European Union, the UK and Arab and Muslim countries through their diplomatic missions.
It also urged Muslims to conduct special prayers and offer "dua" for restoration of Jerusalem to State of Palestine and for the protection of the Al-Aqsa mosque.