A few corrections, the general is a military officer. He is not a government official. He may state, in broad terms, what the policy is, but he does not formulate policy. He provides input, when asked, to those who do formulate policy.
The general, also, is not in control of the Indian nuclear arsenal. Though possession and security of the arsenal is tasked to the military, the control of the weapons rests with the civilian leadership. The PM of India, to be specific.
In terms of the capability of the jihadis: With the help of state actors, the jihadi network has very credible and real capabilities. As with the recent arrest of Pakistani nationals in Italy, and the arrest of Headley in the US, the threat to India is a very real one. We are also at the one year anniversary of attacks in Mumbai that were carried out by jihadi outfits originating in Pakistan.
On balance, I believe that India’s threat perception is a very valid one.