The Islamic State, known by its acronym Isis, is reportedly planning attacks in Delhi and Rajasthan, intelligence agencies have warned the police forces in the two states.
Isis militants may carry out lone wolf strikes in Delhi and Rajasthan, or could attack in groups of two or three fighters, central intelligence officials have said, according to The Times of India.
The growing influence of Isis in India prompted the Home Ministry to meet with police chiefs of various states last month to evaluate the threat.
In June, the Intelligence Bureau had warned police forces in all states in the country to be on alert for possible Isis attacks.
The Islamic State has spread its influence among several Indian youths in recent months through social media, and in recent weeks several Indians have been deported from Gulf nations on suspicion of having been radicalised by Islamic State supporters.
However, Home Minister Rajnath Singh said this week that the issue was not a cause of worry.
"Do not worry about it, there is nothing like this," Singh was quoted saying by the Press Trust of India on Monday when asked about the Isis threat.