Indian Navy destroys pirate boat.

"Millons for defense but not one penny for tribute". Paying ransom only encourages the criminal element to increase their predation.

The problem there is that the people running this are sitting in a luxury villa in Mombasa or Dubai collecting the ransoms and couldn't really give a damn if you flattened a town in somalia and killed all their gunmen , they would just buy another town and hire more gunmen .
What you need is a small international police operation to arrest the financiers , plus of course you need relative stability in the area of North-East africa so any that escape the net don't have a bunch of local warlords and armed people looking for jobs that the financiers can hire easily .
I agree. Follow the money and take out the organizers just like any other organized crime syndicate. The pirates could give a fig about religion. They're attacking any and all ships irregardless of religious sect or affiliation. The only criteria is if they can attack and board them. Make this more difficult and expensive for them to do so.

The pirates aren't using ships just small swift coastal boats, and like any guerrilla war, the hardest part is identifying the foe. Boarding a large tanker or container ship wouldn't be so easy if they employed anti-boarding devices and armed security teams for the most valuable cargos.
As the cost of shipping insurance goes up more resources for defense and police action will be spent to minimise the losses. It can't be stopped, and as far as stability in that area of the world goes...has it ever really been stable?