The government also moved a bill to bifurcate the state into two Union Territories J&K with an Assembly and Ladakh without an Assembly.
According to experts, external security in the region will depend on the way Pakistan and China react to the decision.
J&K is cut off from the rest of the country at present with all communication lines snapped. Top Kashmir political leaders are placed under house arrest.
"Right now the security arrangement in the Valley is huge and it depends on how the locals react to it in the long term. At present, Pakistan is too involved in its problems with Afghanistan and the Taliban. Once it's able to settle them, it could turn attention towards India.
"China won't involve itself directly in the Kashmir issue. But overall security in the area also depends on what kind of support it extends to Pakistan," former Navy chief Admiral Arun Prakash told .
Lieutenant General (retd) Deependra Singh Hooda, former GoC-in-C of the Northern Command, told , India was well prepared to deal with any kind of breakdown in law and order in the Valley.
The Centre had deployed a huge contingent of central forces in the Valley anticipating violence, ahead of its decision to announce the presidential order on withdrawing special status to the state, he said.
"There is a feeling that the law and order problem could intensify in the Valley. But with the induction of additional police forces, we are better prepared to deal with contingencies.
"Pakistan will take advantage if law and order situation in the Valley declines. Its attempts to infiltrate might increase. At present, China does not seem to pose any direct external threat to Kashmir," said Hooda.
( With inputs from IANS )