I have read through the posts and done quite a bit of my own research and the only real conclusion I can come to is that there are no mercs in SG but foreign merc in SFF which comprises a cast array of different units. If you look into SFF you will see that SFF is not one uniformed standardized unit, instead it is more a amalgamation of different units with a huge range of specialties from CT, espionage, counter-espionage, intel gathering etc and could more than likely be comprised of foreign mercs. Whilst the unit named SG comprises a number of units such as support staff but the "shooters" are 100% Indian SOFs, there is no doubt in my mind of this. SG can be (to an extent) compared to Delta Force (or Army Compartmented Elements (ACE) as it is now called) as ACE does actually function 100% under the command of CIA although CIA has the SAD (simiarly R&AW has SFF).
+ on a side note I have written on PDF about an encounter of mine when I was last in India involving and IA SF guy who I am now convinced was SG (of course he didn't even confirm this at all and was reluctant to even admit he was part of the Indian military in any way).
++ Anyone who says we shouldn't trust the foreign mercs is being a bit ignorant- it is not about trust but utility. R&AW obviously see utility in keeping some of these guys around and I trust their judgement and am sure these guys aren't kept too well clued up wrt intel and do what they are told so there is little risk of national secruty breach.