Security forces have to devise ways to counter this, he said while addressing gentlemen cadets at the prestigious Indian Military Academy here.
Rawat also said terrorism was the biggest challenge in front of the country as he urged the cadets to gear up to grapple with the scourge.
The Army chief presided over a colourful passing out parade by 490 gentlemen cadets on the completion of their course.
He said it was time they put the lessons of valour and military skills learnt at the academy to the service of the nation.
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Earlier, the immaculately turned-out cadets put up a well synchronised parade before Rawat at the academy's famous tarmac drill square with the historic Chetwode Building in the background.
As the passing-out parade started two army choppers flew over the drill square to shower rose petals on the tarmac, carpeting it with flowers.
The 490 cadets who passed out today include 67 cadets from friendly countries. Uttar Pradesh accounts for the highest number of cadets with a figure of 74, followed by Haryana with 49, Uttarakhand (40), Rajasthan (30), Bihar (28) and Delhi with 23.