While it is ok to suggest measures on how to fight terrorism , one has to also understand that nobody is born a terrorist. If the govt can sponsor mass acts of terrorism such as 1984 riots or Gujarat riots then they create terrorism too. In fact an abusive state machinery is almost always a pre requisite for disenchantment and terrorism to be born.
The examples of Assam , J&K , Punjab etc. will show that an inept political class , a pliant and ineffective bureaucracy , an abusive police force and corrupt criminal politicians have been the SEEDS of terrorism.
Good governance and preventing criminals from entering politics would ensure that such things never happened in India in the first place.
To sum it up. Preventing terrorism is far better than trying to cure it after it has grown..