The parliamentary standing committee on home affairs, headed by senior Congress leader P Chidambaram, also observed that there is a "sinister and complex connection" between the simultaneous rise in stone-pelting incidents and 'fidayeen' (suicide) attacks on the establishments of security forces.
The committee, in its report submitted to Parliament, said it was aware of the disturbing trend of recruiting and training of local youths by the militants in the light of the numerous attempts foiled by the security forces.
The panel said while the law and order incidents have kept the security forces busy, the militants, meanwhile, have found time to reorganise themselves and perpetrate terrorist attacks on the forces.
"The committee recommends that the ministry must work towards comprehensively breaking this nexus through a multi-pronged strategy that encompasses preventing the youth from joining the militant ranks, choking the financing and supply of arms to terrorist outfits and simultaneously launching counter insurgency operations throughout the Kashmir region to identify and capture the existing militants," it said.