Krish. You can consider it minority appeasement. Well there could be another way of looking at the problem.
In Sri Lanka, the Singhalese kept Tamils suppressed - prevented them access to education etc. They landed with decades of conflicts. The Tamils in Malaysia because they were descendants of Plantation labor also like their Sri Lankan counterparts lacked education. Their plight was made worse when Malaysia adopted the BumiPutra policy which favored Malays as Sons of the Soil. So in Sri Lanka - Tamils remain uneducated & poor. This makes them happy hunting grounds for terrorists.
In India, Muslims as a community are the poorest and uneducated. So they attend Madrasas and come under the easy influence of communalized mullahs and terrorists.
So long term strategies should be directed to lift Muslims from poverty and illiteracy. If we don't we will remain divided time and eternity. A nation divided in itself is a weak one. The UPA's government strategy from this point of view is the right one.