"We saw insurgency in Punjab, in Kashmir and North-East, but fortunately if we see rest of the world, we are still haven of safety and security," he said.
Delivering the first Dr A P J Abdul Kalam Memorial Lecture at India Islamic Cultural Centre here, Jaitley also said the resources need to be spent on poverty elimination and infrastructure development to become a developed society, rather than "lopsided expenditure only on the security".
Terming these as policy diversions, Jaitley said "caste, language, religion, water, these are capable of throwing up emotions, which can actually deflect from a developmental agenda and strife can create, can prove very costly for society".
"... Our ability and maturity to distance ourselves from these issues, put a closure to these issues and therefore get rid of these kinds of diversions, will also reflect on the kind of maturity our society itself have," the minister added.
He also stressed that India also needs credible politics so that "we can have credible policy".
"And for the purposes of credible politics, we have to realise the strength of democracy, where the power of democracy, Parliament, governments, political party is huge. Therefore, the best in the system needs to get into that activity," he said.