NEW DELHI: A radical Muslim seminary in India, said to have inspired the Taliban, has issued a "fatwa", or edict, against terrorism in a meeting attended by thousands of clerics and students.

The Darool-Uloom Deoband, a 150 year-old institute controlling thousands of smaller Islamic seminaries vowed to wipe out terrorism late on Saturday in New Delhi, an ageing rector said.

"Islam rejects all kinds of unjust violence, breach of peace, bloodshed, murder and plunder and does not allow it in any form," a senior rector said.

Teachings of the Deoband school and its strict interpretation of Islamic law, have spread to many countries, including Britain and Afghanistan.

Senior clerics chanted slogans against terrorism, and many held placards that said "Islam means peace" and "terrorism is an enemy, finish it." Leaders asked those gathered to pledge and fight terror in all forms, witnesses said.

Analysts described the meet as a significant step towards addressing terrorism and bringing relief to nation's 140 million Muslims, who feel the acts of some individuals were tarnishing the image of the community as a whole.