It was a mishap bro from both sides tbh, they had hunting rifles which Para SF took for insurgents. And imho Army could be withdrawn from NE now, AR, CRPF and State police can handle it while SF restricting itself to CBR and HVT Raids.
Are you kidding?!
Nagaland and parts of Manipur are as bad as Kashmir, sans Islamism. Have you seen how NSCN/M/K operates? They are literally an army and armed to teeth with Chinese weapons. They are also very effective combatants, that pits our Naga regiment folks with these terrorists. Police & CRPF would find it hard to tackle. Maoists for them are good enough as they are more of shoot-and-scoot operatives. These terrorists are more along the lines of LeT & JeM folks (I'd argue that they are even better trained).
The Naga & some Manipuri terror groups are separatists that pretend to have "ethnic" differences. whereas in truth is that they are funded by the Baptist Church from the US, armed by Chinese & have a military-style training regimen. Mizo one was also like this but then Indira Gandhi was a leader who was willing to go to any extent. She literally bombed the terrorists using IAF back then. Surrender was the only option other than extermination.
Army should stay and finish off the terrorism there. Until NSCN is wiped out or chooses to return to the mainstream, they shouldn't budge. This might sound weird for a northeasterner to say but it is out of pragmatism - not any dislike or prejudice against our Naga brothers. More Nagas are our Army than NSCN can ever have.