Indian authorities have quite a situation on their hands. The more I read and understand what happened, the more I come to believe that this is not a home-grown Indian Islamist group, but more likely a Pakistani group. There are reports of the gunmen having been transported by sea in a vessel whose last-known port was Pakistan. This is not going to have a positive impact on Pakistani-Indian relations, and it appears to signify a possible uptick in the training/capability of Pakistani Islamists, perhaps as a result of increased concentrations of more sophisticated Islamist groups taking up refuge there (i.e. AQ). Whatever is happening here, Pakistan is an open-sewer and its continuing status as the terror capital of the world must be challenged.
UPDATE: Goldwater's Ghost with some thoughts.