How did the Government of India respond to regional issues in the 1980s, such as the situation in Punjab and the North-East?

By reaching negotiated settlements with regional movements.

Answer: By reaching negotiated settlements with regional movements.
The Government of India resolved regional issues by negotiating with regional movements, which led to reconciliation and reduced tensions.

Various instances have demonstrated that, even after six decades of gaining Independence, some of the issues related to national integration remain unresolved. It is evident that regional aspirations, encompassing demands for statehood, economic development, autonomy, and even separation, continue to surface. The period since 1980 has magnified these tensions and tested the ability of democratic politics to accommodate the diverse demands of various segments of society. One lesson is that the best way to respond to regional aspirations is through democratic negotiations rather than through suppression. Look at the situation in the eighties – militancy had erupted in Punjab; problems were persisting in the North-East; students in Assam were agitating; Kashmir valley was on the boil. Instead of treating these as simple law and order problems, the Government of India reached negotiated settlement with regional movements. This produced a reconciliation which reduced the tensions existing in many regions. The example of Mizoram shows how political settlement can resolve the problem of separatism effectively.