2017 · GS Paper 3 · Q20 · 15 marks

The scourge of terrorism is a grave challenge to national security. What solutions do you suggest to curb this growing menace ? What are the major sources of terrorist funding ?

In short

Terrorism can be curbed through strong laws, intelligence fusion, capable responders, deterrence by punishment and choking its finance, which flows from state sponsorship, narcotics, fake currency, hawala, charities and crypto. Pakistan's sponsorship kept it on the FATF grey list from 2018 to 2022.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
The Pahalgam attack of April 2025, which killed 26 civilians, most of them tourists, shows that terrorism remains a grave threat to national security. Curbing it needs hard security as well as choking its money.
Solutions to Curb the Terror Menace
•

Strong laws

The 2019 UAPA amendment allows individuals to be designated terrorists, and the NIA can now probe attacks on Indians abroad; speedy trials must follow.

•

Intelligence fusion

The Multi-Agency Centre and NATGRID connect databases to catch reconnaissance like David Headley's before 26/11.

•

Deterrence by punishment

The 2016 surgical strikes, Balakot (2019) and Operation Sindoor (2025) raise the cost for sponsors.

Major Sources of Terrorist Funding
•

State sponsorship

Pakistan's support for Lashkar-e-Taiba and Jaish-e-Mohammed kept it on the FATF grey list from 2018 to 2022.

•

Narco-terror and fake currency

The 2021 Mundra port seizure of nearly 3,000 kg of heroin and fake currency notes show drug and counterfeit money funding cells.

•

Hawala and charities

The NIA's 2017 Kashmir terror-funding case, ending in Yasin Malik's life sentence in 2022, exposed hawala routes.

•

Extortion and crypto

North-East insurgents and Maoists levy "taxes", while crypto and crowdfunding open new channels.

Way Forward
•

Follow the money

FIU-IND, the NIA and PMLA tools must track hawala and crypto, building on India's 2024 FATF evaluation.

•

Global and local

Push the Comprehensive Convention on International Terrorism and the "No Money for Terror" agenda, and back community-led deradicalisation.

Conclusion
Since terrorism lives on ideology, sanctuary and money, a whole-of-government approach that chokes funding and wins hearts will deliver comprehensive national security.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn map: Terror flashpoints and funding routes. Marked: Pahalgam, New Delhi, Mundra port.
Map: Terror flashpoints and funding routes

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Extremism17 questions

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Question from the official UPSC Civil Services (Main) Examination 2017 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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