Over the past several years, India has been the victim of large scale terrorism sponsored from across the borders. There have been innumerable incidents of terrorist attacks, not only in the militancy and insurgency affected areas and areas affected by Left Wing Extremism, but also in the form of terrorist attacks and bomb blasts, etc., in various parts of the hinterland and major cities, etc. A large number of such incidents are found to have complex inter-State and international linkages, and possible connection with other activities like the smuggling of arms and drugs, pushing in and circulation of fake Indian currency, infiltration from across the borders, etc. keeping all these in view, it was felt that there was a need for setting up of an Agency at the Central level for investigation of offences related to terrorism and certain other Acts, which have national ramifications. Several experts and Committees, including the Administrative Reforms commission in its Report, had made recommendations for establishing such an Agency.

The Government after due consideration and examination of the issues involved, proposed to enact a legislation to make provisions for establishment of a National Investigation Agency in a concurrent jurisdiction framework, with provisions for taking up specific cases under specific Acts for investigation.

Accordingly the NIA Act was enacted on 31-12-08 and the National Investigation Agency (NIA) was born. At present NIA is functioning as the Central Counter Terrorism Law Enforcement Agency in India.