This article attempts to explain why and how the Indian state has been successful in managing the militant form of Islamic fundamentalism in India, despite favourable internal and external conditions for such militancy. Internally, it includes such factors as the relative material and cultural deprivation of Indian Muslims, the context of Hindutava and the communal riots, and externally, the Islamic radical movements abroad. Varied literatures have emphasized these factors for the growth of Islamic fundamentalism and Islamic militancy across the Muslim world. However, India has not witnessed large-scale Islamic militancy, despite the growth in Islamic fundamentalist organizations. The article offers a theoretical perspective that takes into consideration the interplay of the nation-building process, the constitutional framework of minority rights, the doctrine of Indian secularism, and the democratic political process. This interplay explains the absence of large-scale militancy and violence, either on the part of Islamic fundamentalist groups/institutions or the Muslim population in India.