India has said that, Pakistan of using terror as an instrument of state policy. In his opening remarks at the Indo US homeland security dialogue that is underway in New Delhi, Union Home Minister P Chidambaram said, different terror groups operating from safe havens of Pakistan are working in coordination and the society is also getting radicalised there. He added that Pakistani economy has weakened, the state structure in Pakistan has become fragile and that is why India perhaps is living in the most difficult neighbourhood in the world. Mr Chidambaram said, the global epicenter of terrorism is in our immediate western neighbourhood and the vast infrastructure of terrorism in Pakistan has for long flourished as an instrument of state policy. He said, terrorist infiltration or fake currency inflow does not only take place through our western border, but is often routed through countries that we share open borders with. The Home Minister said, in a world of complex challenges, including new and emerging forms of threats, terrorism remains a principal challenge for India and the United States. He said, the events of the past few days, especially inside Pakistan, speak to the successes and to the enduring risks and challenges. He said, despite extraordinary efforts and significant successes against the forces of terrorism, its threat remains strong. Mr Chidambaram added that the two countries and indeed, the global community must also deal with a range of other challenges, including counterfeit currency, narcotics trafficking, threats and risks in the cyber space.The Home Minister said, this is an important milestone in India-US relations and adds a very important dimension to the growing strategic partnership between the two countries. He said, it also implements one of the key strategic outcomes of the visit of President Barack Obama to India in November 2010, during which Prime Minister Dr. Manmohan Singh and President Obama announced the Homeland Security Dialogue.AIR correspondent reports in the first ever security dialogue, progress on the investigations into the 26/11 Mumbai terror attacks, coastal security, countering illicit financing and trans-national crimes will be taken up later in the day. The Indian delegation is being led by the Union Home Minister, Mr. P. Chidambaram while the US delegation is represented by the Secretary, Homeland Security, Ms Janet Napolitano.