Sage in Srinagar is Hindu (5)
I believe the answer is:
rishi
'sage' is the definition.
(term for a Hindu sage)
'in srinagar is hindu' is the wordplay.
'in' indicates a hidden word.
'RISHI' is hidden within 'srinagar is hindu'.
(Other definitions for rishi that I've seen before include "Spiritual leader" , "Hindu sage or saint" , "holy man" , "Poet" , "Guru" .)