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 ?
Approach · directive: “what solutions / what are the major sources”
What it asks · Suggest measures to curb terrorism and name the main sources of terrorist funding.
The question has 2 parts — answer each
- Suggest solutions to curb terrorism
- Identify the major sources of terrorist funding
Open with · Terrorism attacks the State's core duty of keeping citizens safe, and it survives on money, weapons, ideology and safe havens.
Cover
- Sources of funds: hawala and illegal money transfers, counterfeit currency, drug trafficking, smuggling, and extortion or ransom demands.
- Sources of funds: misuse of charities and donations, state sponsorship, cyber fraud, front companies and, in some regions, extortion in mining and construction.
- Intelligence and policing: better sharing among agencies and States, NIA and NATGRID, strong local police and border and coastal surveillance.
- Legal and financial action: the Unlawful Activities (Prevention) Act provisions on raising funds, Prevention of Money Laundering Act, financial intelligence and FATF norms.
- Countering radicalisation: community engagement, deradicalisation, monitoring of online recruitment, and education and jobs for vulnerable youth.
- Diplomacy: pressure through the UN, FATF and bilateral cooperation to end safe havens; capacity building and quick response forces such as the NSG.
- Balance: measures must respect due process and human rights so that action against terrorism does not erode trust of the affected communities.
Close with · Terrorism needs a combined response: sharp intelligence, tight financial controls, fair justice and community trust, backed by global cooperation.
Question: UPSC's CS (Main) 2017, GS Paper III — paper ↗. Approach: Minimalist IAS, checked 30 Sept 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer · 345 words (UPSC limit 250) · Minimalist IAS
Terrorism strikes at the State's first duty, the safety of its citizens, and it lives on money, arms, ideology and safe havens; curbing it means cutting each of these lifelines.
Solutions
- Intelligence: strengthen the Multi-Agency Centre and NATGRID, integrate State intelligence, invest in human sources and technical surveillance, and share actionable inputs in real time.
- Policing and borders: modernise State police as first responders, fence and electronically watch borders, complete coastal security with marine police and the Coast Guard, and keep NSG hubs ready for rapid response.
- Law and courts: use the Unlawful Activities (Prevention) Act, fast-track terror trials, protect witnesses, and give the National Investigation Agency the reach to pursue cross-State cases.
- Financial choke: the Prevention of Money Laundering Act, the Financial Intelligence Unit and FATF standards to trace and freeze funds.
- Countering radicalisation: monitor online recruitment, engage community and religious leaders, run deradicalisation and rehabilitation programmes, and expand education and jobs in Jammu and Kashmir, the Northeast and left-wing extremism districts.
- Diplomacy: press for the Comprehensive Convention on International Terrorism at the UN, use FATF and UN sanctions listings against sponsors, and deepen intelligence pacts with partners.
- Rights and trust: due process, no collective punishment and accountable security forces, so that counter-terrorism does not create the next recruit.
Major sources of terrorist funding
- Hawala and other informal transfers that leave no banking trail.
- Fake Indian currency notes pushed in through neighbouring countries.
- Narcotics from the Golden Crescent and Golden Triangle, and smuggling of gold and arms.
- Extortion, ransom and 'levies' on contractors, mining and transport, especially by left-wing extremists in central India.
- State sponsorship by hostile agencies.
- Charities, NGOs and diaspora donations diverted from their stated purpose.
- Cyber fraud, front companies and, increasingly, virtual currencies.
- India's counters: the Terror Funding and Fake Currency cell of the NIA, FCRA scrutiny of foreign funding, demonetisation (2016) aimed partly at counterfeit notes, and the UAPA offence of raising funds for terrorism.
Terrorism yields to a combined response: sharp intelligence, dried-up finance, fair and fast justice and communities that trust the State, backed by cooperation across borders.
Written by Minimalist IAS from facts checked at source (how we verify) — a little fuller than exam length, so every part of the question is covered; in the hall, keep the structure and trim the detail. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.