The power of terrorism lies in its ability to generate fear. Arbitrary death — anonymous, place uncertain, extent unknown — is the principal means by which the terrorist seeks to shroud a nation under a pall of dread. But the essence of fear is personal: the collective is only a sum total of individual fears. This makes the potential reaction more intense, for the threat to one's life so easily breeds irrational rage. Rage is but one final provocation away from violence.
The Indian Mujahideen, whoever they might be (I am not totally sure they are truly Indian, and am certain that they are not true Mujahideen) know what they are doing. Their strategy of slander-and-slaughter is not aimed at the Indian government, for which they have utter contempt in any case. Their target is the real enemy, the people of India. They are sowing continuous poison along Hindu-Muslim seam lines in order to enrage the former, provoke communal violence and exploit the resultant angst among Muslim youth so that more might drift towards terrorism. They want gulfs that cannot be crossed without irreversible corrosion.