Background

The Indus Valley civilization, one of the world's oldest, flourished during the 3rd and 2nd millennia B.C. and extended into northwestern India. Aryan tribes from the northwest infiltrated onto the Indian subcontinent about 1500 B.C.; their merger with the earlier Dravidian inhabitants created the classical Indian culture. The Maurya Empire of the 4th and 3rd centuries B.C. - which reached its zenith under Ashoka - united much of South Asia. The Golden Age ushered in by the Gupta dynasty (4th to 6th centuries A.D.) saw a flowering of Indian science, art, and culture. Islam spread across the subcontinent over a period of 700 years. In the 10th and 11th centuries, Turks and Afghans invaded India and established the Delhi Sultanate.

In the early 16th century, the Emperor Babar established the Mughal Dynasty which ruled India for more than three centuries. European explorers began establishing footholds in India during the 16th century. By the 19th century, Great Britain had become the dominant political power on the subcontinent. The British Indian Army played a vital role in both World Wars. Nonviolent resistance to British rule, led by Mohandas Gandhi and Jawaharlal Nehru, eventually brought about independence in 1947. Communal violence led to the subcontinent's bloody partition, which resulted in the creation of two separate states, India and Pakistan.

The two countries have fought three wars since independence, the last of which in 1971 resulted in East Pakistan becoming the separate nation of Bangladesh. India's nuclear weapons tests in 1998 caused Pakistan to conduct its own tests that same year. In November 2008, terrorists allegedly originating from Pakistan conducted a series of coordinated attacks in Mumbai, India's financial capital. Despite pressing problems such as significant overpopulation, environmental degradation, extensive poverty, and widespread corruption, rapid economic development is fueling India's rise on the world stage.India is one of the oldest civilisations with a kaleidoscopic variety and rich cultural heritage.

Location: Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan

Total Area: 3,287,263 sq km

Climate: The weather is hot most of the year with variations from region to region. The coolest weather lasts from around December to February, with fresh mornings and evenings and mostly sunny days. The really hot weather, when it is dry, dusty and unpleasant, is between March and June. Monsoon rains occur in most regions in summer anywhere between June and early October.

Terrain: Uplandplain (Deccan Plateau) in south, flat to rolling plain along the Ganges, deserts in west, Himalayas in north

Population: 1,189,172,906 (July 2011 est.)

Ethnic groups: Indo-Aryan 72%, Dravidian 25%, Mongoloid and other 3% (2000)

Religions: Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, other 1.8%, unspecified 0.1% (2001 census)

Languages: Hindi 41%, Bengali 8.1%, Telugu 7.2%, Marathi 7%, Tamil 5.9%, Urdu 5%, Gujarati 4.5%, Kannada 3.7%, Malayalam 3.2%, Oriya 3.2%, Punjabi 2.8%, Assamese 1.3%, Maithili 1.2%, other 5.9%

Note: English enjoys the status of subsidiary official language but is the most important language for national, political, and commercial communication; Hindi is the most widely spoken language and primary tongue of 41% of the people; there are 14 other official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, and Sanskrit; Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but is not an official language (2001 census)

Government Type: Federal republic

Executive Branch:

Chief of State: President Pratibha Patil (since 25 July 2007); Vice President Hamid Ansari (since 11 August 2007)

Head of Government: Prime Minister Manmohan Singh (since 22 May 2004)

Cabinet: Cabinet appointed by the president on the recommendation of the prime minister

Elections: President elected by an electoral college consisting of elected members of both houses of Parliament and the legislatures of the states for a five-year term (no term limits); election last held in July 2007 (next to be held in July 2012); vice president elected by both houses of Parliament for a five-year term; election last held in August 2007 (next to be held August 2012); prime minister chosen by parliamentary members of the majority party following legislative elections; election last held April - May 2009 (next to be held no later than May 2014)

Election results: Pratibha Patil elected president; percent of vote - Pratibha Patil 65.8%, Bhairon Singh Shekhawat - 34.2%

Legislative branch: Bicameral Parliament or Sansad consists of the Council of States or Rajya Sabha (a body consisting of not more than 250 members up to 12 of whom are appointed by the president, the remainder are chosen by the elected members of the state and territorial assemblies; members serve six-year terms) and the People's Assembly or Lok Sabha (545 seats; 543 members elected by popular vote, 2 appointed by the president; members serve five-year terms)

Elections: People's Assembly - last held in five phases on 16, 22-23, 30 April and 7, 13 May 2009 (next must be held by May 2014)

Election results: People's Assembly - percent of vote by party - NA; seats by party - INC 206, BJP 116, SP 23, BSP 21, JD (U) 20, AITC 19, DMK 18, CPI-M 16, BJD 14, SS 11, AIADMK 9, NCP 9, other 61, vacant 2

Judicial Branch: Supreme Court (one chief justice and 25 associate justices are appointed by the president and remain in office until they reach the age of 65 or are removed for "proved misbehaviuor")

Political Parties and Leaders: All India Anna Dravida Munnetra Kazhagam or AIADMK [J. JAYALALITHAA]; All India Trinamool Congress or AITC [Mamata BANERJEE]; Bahujan Samaj Party or BSP [MAYAWATI]; Bharatiya Janata Party or BJP [Nitin GADKARI]; Biju Janata Dal or BJD [Naveen PATNAIK]; Communist Party of India or CPI [B. BARDHAN]; Communist Party of India-Marxist or CPI-M [Prakash KARAT]; Dravida Munnetra Kazhagam or DMK [Kalaignar M.KARUNANIDHI]; Indian National Congress or INC [Sonia GANDHI]; Janata Dal (United) or JD(U) [Sharad YADAV]; Left Front (an alliance of Indian leftist parties); Nationalist Congress Party or NCP [Sharad PAWAR]; Rashtriya Lok Dal or RLD [Ajit SINGH]; Samajwadi Party or SP [Mulayam Singh YADAV]; Shiromani Akali Dal or SAD [Parkash Singh BADAL]; Shiv Sena or SS [Bal THACKERAY]; Telugu Desam Party or TDP [Chandrababu NAIDU]; note - India has dozens of national and regional political parties; only parties or coalitions with four or more seats in the People's Assembly are listed

Economy | overview

Indiais developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services.

Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. An industrial slowdown early in 2008, followed by the global financial crisis, led annual GDP growth to slow to 6.5% in 2009, still the second highest growth in the world among major economies. India escaped the brunt of the global financial crisis because of cautious banking policies and a relatively low dependence on exports for growth.

Domestic demand, driven by purchases of consumer durables and automobiles, has re-emerged as a key driver of growth, as exports have fallen since the global crisis started. India's fiscal deficit increased substantially in 2008 due to fuel and fertilizer subsidies, a debt waiver program for farmers, a job guarantee program for rural workers, and stimulus expenditures. The government abandoned its deficit target and allowed the deficit to reach 6.8% of GDP in FY10. Nevertheless, as shares of GDP, both government spending and taxation are among the lowest in the world.

The government has expressed a commitment to fiscal stimulus in FY10, and to deficit reduction the following two years. It has increased the pace of privatization of government-owned companies, partly to offset the deficit. India's long term challenges include widespread poverty, inadequate physical and social infrastructure, limited employment opportunities, and insufficient access to basic and higher education. Over the long-term, a growing population and changing demographics will only exacerbate social, economic, and environmental problems.