"This is a very good action by India as a friendly government", Keheliya Rambukwella, the Minister of Information and Government spokesman told reporters here.
LTTE was banned in India in the aftermath of the assassination of former prime minister Rajiv Gandhi in 1991.
Though the LTTE was defeated and virtually decimated by the Sri Lankan forces in 2009 when its supremo V Prabhakaran was eliminated, the ban continues.
India had extended the ban on LTTE declaring that it continues to adopt a strong anti-India posture and poses a grave threat to the security of its citizens.
In a notification, the Home Ministry said the activities of LTTE are detrimental to the sovereignty and territorial integrity of India and there is a continuing strong need to control all such separatist activities by all possible means.
"LTTE continues to adopt a strong anti-India posture as also continues to pose a grave threat to the security of Indian nationals, it is necessary to declare LTTE as an 'unlawful association' with immediate effect," the notification issued by India had said.