The EU's decision strikes a major blow to the group as restrictive anti-terror measures will be applied to it, including a freeze on its funds, assets and economic resources.The Hizbul Mujahideen is among the groups active in Jammu and Kashmir and reportedly has strong ties to the Muslim fundamentalist group Jamaat-e-Islami.

Founded in late 1980s, the group's primary focus is Indian security forces and politicians in Jammu and Kashmir. It also occasionally strikes at civilian targets. It reportedly operated in Afghanistan and is led by Syed Salahuddin.

The outfit claimed responsibility for a car bomb late last month that killed a border guard and injured 21 people on the outskirts of Srinagar [Images]. New Delhi [Images] calls the Hizbul Mujahideen "terrorists" for their frequent guerrilla raids to attack Indian army [Images] targets across the Line of Control [Images].

The EU blacklist was drawn up late in 2001, following the September 11 attacks in New York and Washington and is revised regularly.

Among those already declared terrorist groups are the radical Palestinian group Hamas and the former Basque separatist party Batasuna.

Also read: Hizbul needs to be involved in talks: Mehbooba