Jaitley also slammed Chidambaram by saying that he had no answers on the security lapse, which unfortunately led to the recent Mumbai serial blasts.
Defending himself, Chidambaram said that the country was slowly but successfully building capacity to fight terrorism whose origin lies in its immediate neighbourhood.
"We are dealing with a complex subject. As long as there was violence here and violence there, we could take it as a law and order problem. But we are dealing with a complex problem of terrorism which is not a law and order problem," Chidambaram told the Rajya Sabha.
He also added that home-grown terror was a new challenge India was facing because the problem was ignored and allowed to grow when the nation was fighting cross-border terrorism.
The Home Minister further added that while the investigating agencies were probing jihadi cases, right-wing fascists were also on the rise in India.