India

India, officially the Republic of India, is a country in South Asia.  It is the seventh largest country by geographical area, the second-most populous country, and the most populous democracy in the world.  Mainland India is bounded by the Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal on the east; and it is bordered by Pakistan to the west; China, Nepal, and Bhutan to the north; and Bangladesh and Burma to the east.  India is in the vicinity of Sri Lanka, and the Maldives in the Indian Ocean, its Andaman and Nicobar Islands are also in the vicinity of the Indonesian island of Sumatra in the Andaman Sea, and in the Andaman Sea India also shares a maritime border with Thailand.

The Indus Valley civilization, one of the world's oldest, flourished during the third and second 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 fourth and third centuries B.C -- which reached its zenith under Ashoka -- united much of South Asia.  The Golden Age ushered in by the Gupta dynasty (fourth to sixth 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 Babur 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.  Despite pressing problems rapid economic development is fueling India's rise on the world stage.

From the 1950s to the 1980s, India followed socialist inspired polices.  The economy was shackled by extensive regulation, protectionism, and public ownership, leading to pervasive corruption and slow growth.  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.  It has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers.

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 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.