UPSC DAW Mains Answer Writing 10th July 2025
Question
State-sponsored terrorism and its financing pose a serious threat to India’s internal security. In light of recent international recognition of this issue, critically examine its implications for India and suggest suitable countermeasures. (15 marks, 250 words)
Model Answer
Introduction:
State-sponsored terrorism refers to deliberate support - financial, logistical, ideological, or military -extended by a nation-state to non-state actors for executing violent acts across borders. India has long identified this as a key threat to its internal security, especially with persistent cross-border terrorism from Pakistan. The Financial Action Task Force (FATF) July 2025 report has, for the first time, officially acknowledged state sponsorship of terrorist financing, validating India's position.
Implications of State-Sponsored Terrorism on India’s Internal Security:
Destabilisation of Border Regions:
Persistent infiltration, especially in Jammu & Kashmir, Punjab, and Northeast India.
E.g. 2016 Uri Attack and 2019 Pulwama Attack, both linked to Pakistan-based groups (JeM, LeT).
Radicalisation and Recruitment:
Financial support enables propaganda via social media and religious fronts.
E.g. NIA investigations have revealed Pakistani funding networks for recruiting Kashmiri youth.
Strain on Security Forces and Intelligence Apparatus:
Constant alert along borders and hinterlands drains resources.
E.g. CAPF and military deployments remain heavy in terror-prone areas.
Threat to Economic Stability and FDI:
Terrorist incidents affect investor sentiment and tourism.
E.g. World Bank (2020) estimated India lost over $80 billion due to terrorism from 2000–2018.
Communal Polarisation and Internal Discord: 
Terror attacks often trigger communal tensions, undermining national integration.
E.g. Post-Godhra (2002) and Batla House (2008) incidents show social fallout of terror narratives.
Diplomatic Challenges: 
Repeated evidence of Pakistan’s role in terror financing is dismissed at global forums due to geopolitical alliances (e.g., China shielding Pakistan at UNSC).
Resilience to State-Sponsored Terrorism:
India’s Robust Legal and Institutional Mechanisms: 
Strengthening of UAPA (2019 amendment), digital intelligence via FIU-IND, NIA, and MAC show institutional maturity.
E.g. Ban on PFI (2022) under UAPA for alleged terror links.
Public Resilience and Social Harmony: 
Despite provocations, India has largely avoided mass retaliatory violence in recent years, demonstrating societal resilience and institutional control.
E.g. Delhi Police’s 2023 deradicalisation efforts in youth-prone zones saw 35% drop in communal incidents.
Strategic Deterrence and Retaliatory Capability: 
Surgical strikes (2016) and Balakot airstrikes (2019) signalled India’s proactive doctrine.
Dissuades habitual support for terror proxies.
Suggested Countermeasures:
Financial Intelligence and Regulatory Measures: 
Strengthen FIU-IND and make use of NITI Aayog’s recommendation (2021) for tech-driven fund tracing.
Enforce Unlawful Activities Prevention Act (UAPA) and PMLA more rigorously to block cross-border money trails.
Leverage FATF and Global Platforms: 
India must push for grey/blacklisting of sponsor states based on FATF findings.
Continue advocacy at UNSC’s 1267 Sanctions Committee for designating individuals/entities.
Comprehensive Border Management: 
Implement CIBMS (Comprehensive Integrated Border Management System) on all sensitive borders.
Fast-track fencing, surveillance drones, and satellite monitoring.
Intelligence and Policing Reforms: 
Strengthen Multi-Agency Centre (MAC) for inter-agency intelligence sharing.
Train local police in terror financing and cyber radicalisation detection.
Diplomatic and Legal Offensive: 
Promote bilateral and multilateral Extradition Treaties and Mutual Legal Assistance Treaties (MLATs).
Pursue International Court of Justice (ICJ) or other forums to expose sponsor states—like India did post-Kulbhushan Jadhav case.
Counter-Radicalisation Programs: 
Expand ‘Cyber Swachhta Kendra’ to monitor online extremist content.
Encourage community-based deradicalisation campaigns, as suggested by the K.P. Singh Committee on Counterterrorism (2021).
Conclusion:
State-sponsored terrorism, particularly from India’s western neighbor, remains a deeply embedded challenge to internal security. The FATF’s 2025 acknowledgment lends international legitimacy to India’s long-standing concerns. A multi-pronged strategy is critical for preserving national stability and international credibility.