Library of Congress – Federal Research Division Country Profile: India, December 2004 

COUNTRY PROFILE: INDIA 

December 2004 

COUNTRY 

 Click to Enlarge Image

Formal Name: Republic of India (The official, Sanskrit 

name for India is Bharat, the name of the legendary king 

in the Mahabharata). 

Short Form: India. 

Term for Citizen(s): Indian(s). 

Capital: New Delhi (formally called the National Capital 

Territory of Delhi). 

Other Major Cities: India has 35 cities and urban agglomerations with more than 1 million 

persons. The most populous cities are Mumbai (Bombay) with 16.4 million people, Kolkata 

(Calcutta, 13.2 million), New Delhi (12.8 million), Chennai (Madras, 6.4 million), Bangalore 

(5.7 million), Hyderabad (5.5 million), and Ahmadabad (4.5 million). 

Date of Independence: Proclaimed August 15, 1947, from Britain. 

National Public Holidays: Makar Sakranti (January 14); Republic Day (signing of national 

constitution, January 26); Id-ul-Juha (movable date); Muharram (Islamic New Year, movable 

date); Holi (movable date in March); Ramnavami (birthday of Rama, movable date in March or 

April); Mahavir Jayanti (Birthday of Mahavir, movable date in April); Good Friday (movable 

date in March or April); Milad un Nabi (birthday of Prophet Muhammad, movable date); Buddha 

Poornima (birthday of Buddha, movable date in April or May); Independence Day (August 15); 

Mahatma Gandhi’s Birthday (October 2); Dussehra (also known as Vijaya Dashmi, movable set 

of 10 days in September or October); Deepawali (also known as Diwali, movable set of five days 

in October or November); Id-ul-Fitr (end of Ramadan, movable date); Guru Nanak Jayanti 

(Birthday of Guru Nanak, November 26); Christmas Day (December 25). Many of these 

holidays are observed only by particular religions or in specific regions. The three holidays that 

are observed nationwide are Republic Day, Independence Day, and Mahatma Gandhi’s Birthday. 

Flag: 

India’s national flag has three horizontal bands. The upper band 

 is orange/saffron in color, the lower is green, and the middle is 

white with a 24-spoke dark blue wheel in its center. The saffron 

symbolizes courage, sacrifice, and renunciation; the white 

represents purity and truth; and the green signifies faith and fertility. 

 Click to Enlarge Image The wheel is the Dharma Chakra, an ancient Buddhist symbol used 

by the Indian king Ashoka to represent a “wheel of law.” 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

HISTORICAL BACKGROUND 

Early Empires: Whereas human settlement in India dates back to roughly 400,000 to 200,000 

B.C., extensive urbanization and trade appear to have begun in the Indus River Valley around 

3000 B.C. with the Harappan civilization. From this period until the termination of British 

colonial rule in 1947, numerous empires ruled various portions of South Asia, often assimilating 

a rich array of peoples and each adding its own contribution to an increasingly rich tapestry of 

cultures, ideas, and technologies. Indeed, many of India’s current political, cultural, and 

economic traits have been influenced by historical events and trends, many of which pre-date 

European contact. 

Among the most influential early empires were the Aryans, who migrated from Persia to 

northwestern India around 2000 B.C. and brought a new pantheon of anthropomorphic gods, an 

early form of Sanskrit language, a tiered social system essentially based on ethnicity and 

occupation, and religious texts that are an important part of living Hindu traditions. 

From 326 B.C. to around 200 B.C., the Mauryan Empire emerged as India’s first imperial power 

and ruled its areas with a highly centralized and hierarchical administration. For the next few 

hundred years, North and South India experienced a succession of ruling powers. From 320 A.D. 

to 550 A.D., most of North India was ruled by the Gupta Empire, which in contrast to the 

Mauryan Empire maintained a decentralized form of government, using numerous regional and 

local officials to govern vast territories with an array of local political, economic, and social 

arrangements. As under the Aryans, Gupta authority was religiously legitimized, and it was in 

this period called the Classical Age that the multiple components of Hindu culture became 

crystallized into a more unified system of thought. 

From the disintegration of the Gupta Empire to the mid-thirteenth century, various regional 

kingdoms emerged, and conflicts among them often led to their defeat but rarely to their total 

annihilation. As a result, no highly centralized government emerged in South India, and South 

Indian villages and districts enjoyed much greater local autonomy than those in North India. 

During this period, South India engaged in flourishing trade with Arabs and Southeast Asia, 

which facilitated the diffusion of Indian mathematical concepts to the Middle East and Indian art, 

literature, and social customs to Southeast Asia. 

Islamic influence in South Asia emerged around 711 as Arabs conquered part of Sindh (now in 

Pakistan), and by the tenth century Punjab came under the control of Turkic ruler Mahmud of 

Ghazni. By the thirteenth century, much of India had been periodically conquered, but rarely 

held for long, by a steady succession of Turkic rulers collectively referred to as the Delhi 

Sultanate or Mughal emperors. The most prominent Mughal ruler was the astute and religiously 

tolerant Akbar, who ruled from 1556 to 1605. Akbar oversaw substantial political and 

geographic consolidation by using locally established warriors and powerful zamindar landlords 

to control local populations and collect revenues. But over time, the administrative capacities of 

later Mughal rulers suffered from bloated and excessively corrupt bureaucracies and huge, 

unwieldy armies. 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

European Influence: European economic competition in India began soon after the Portuguese 

arrived in 1498, and by the early 1600s it was manifested in the establishment of commercial 

companies, such as England’s East India Company, that attempted to capture the spice trade. In 

order to gain competitive advantages over each other, European powers also engaged in

commercial and administrative alignments with Mughal power holders. By the late eighteenth 

century, the British had defeated French and Mughal forces to become the preeminent military 

and economic power in India. 

The British used Indian assistance in various commercial and military matters, which enabled 

upward mobility for some Indians. The British also adopted numerous local economic and 

political arrangements that were established by the Mughals, and this practice maintained and 

exacerbated various forms of social stratification. A major turning point in the colonial 

occupation occurred with the Indian-led Sepoy Rebellion of 1857 to 1858, which seriously 

threatened British rule and led to a marked shift in colonial attitudes and practices. Although the 

British made some legal and administrative adjustments to placate Indians, colonial attitudes 

toward Indians shifted from cultural engagement—albeit to change Indians with Western ideas 

and technology—to insularity and xenophobia. 

Independence Movement: By the 1920s, various Indian groups became active in attempting to 

end colonial rule, and the Indian National Congress Party, which had been established in 1885, 

eventually became the most prominent. Led by Mohandas Gandhi and Jawaharlal Nehru, the 

Congress Party promoted non-violence and self-sufficiency and thus garnered respect and 

support among both Indians and some British. But the Congress Party generally failed to attract 

Muslims, who often felt culturally and physically threatened by Hindus, and in 1906 the AllIndia Muslim League was established. The British periodically jailed Congress Party leaders for 

their social movement activities, but among the increasingly restive Indian population the British 

found Congress to be an easier group with which to negotiate than more militant Indian groups. 

Rising civil disobedience and World War II eventually rendered India too costly and difficult to 

administer, and the British granted independence in 1947. 

Independence: In some ways, the victory was bittersweet, as the country emerged with 

numerous political, social, and economic difficulties. On Independence Day (August 15, 1947), 

the country was partitioned into India and Pakistan, which led to massive migration of Hindus 

and Muslims and substantial communal conflict. Furthermore, the British had left India with a 

rudimentary industrial and scientific base; tremendous poverty; a large and growing population; 

social cleavages along caste and economic lines; and contentious territorial boundaries that have 

led to armed conflicts with Pakistan (1947 to 1949, 1965, 1971), China (1962), and numerous 

insurgent groups. 

In spite of such difficulties, the nation can count a number of successes. With the exception of 

martial law from 1975 to 1977, India has maintained a democratic political system. Building on 

the British-established education system, India developed an educational infrastructure that has 

trained one of the world’s largest scientific and technical populations. Using Green Revolution 

agricultural technologies, the country has become self-sufficient in food production. Moreover, a 

combination of socialist planning and free enterprise from the 1950s to the 1970s led to 

substantial industrialization with the goal of making India economically self-sufficient. 

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In the 1980s and 1990s, socialist economic planning and import substitution industries were 

slowly replaced by liberalization measures, a large middle class emerged, information 

technology developed into an important economic sector, and at times economic growth has been 

impressive. India has also become somewhat influential in international political and economic 

matters and appears set to continue those trends. 

Numerous problems remain, however, such as substantial poverty, large income gaps between 

wealthy and poor, a large mass of people who lack the skills to participate in the new economy, 

and numerous insurgencies that threaten the nation’s territorial integrity. Some social issues 

remain unresolved, and the rise of Hindu nationalism has become a particularly contentious topic 

in both Indian society and politics. Indeed, the Bharatiya Janata Party (BJP) led by Prime 

Minister Atal Bihari Vajpayee was in power from 1998 to 2004, and the BJP is often associated 

with Hindu nationalism. Furthermore, some observers believe the nation is facing difficulties in 

the political capacity to address these problems. Intense multiparty political competition over 

numerous economic and social issues has resulted in often-fragile coalitions of political parties, 

and no single political party has held a parliamentary majority since 1989. The government 

changed nine times from December 1989 to the elections in May 2004 in which the Indian 

National Congress returned to power under Prime Minister Manmohan Singh. Thus, increasing 

pluralism of political parties, growing diversity in interest-group representation, and substantial 

ideological divisions among parties are significant obstacles in policy implementation. 

GEOGRAPHY 

Location: India occupies much of the South Asian 

subcontinent, and the Indian mainland stretches 

eastward from Pakistan in the west to Bangladesh 

and Burma in the east. On the north, India borders 

China, Nepal, and Bhutan. The Indian Ocean to the 

 south, the Arabian Sea to the west, and the Bay of 

Bengal to the east form the country’s coastline. 

Noncontiguous to the mainland are the Lakshadweep 

Islands in the Arabian Sea and the Andaman and 

Nicobar Islands located 1,300 kilometers from the 

mainland in the Bay of Bengal. 

Size: The country’s exact size is subject to debate 

because some borders are disputed. The Indian government lists the total area as 3,287,260 

square kilometers and the total land area as 3,060,500 square kilometers; the United Nations lists 

the total area as 3,287,263 square kilometers and total land area as 2,973,190 square kilometers. 

In either case, India is the seventh largest country in the world and about one-third the size of the 

United States. 

 Click to Enlarge Image

Land Boundaries: Land boundaries total 15,200 kilometers. India shares common borders with 

Pakistan (3,325 kilometers; the Jammu and Kashmir border is 1,085 kilometers), China (line of 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

actual control is 3,439 kilometers), Bhutan (605 kilometers), Nepal (1,690 kilometers), Burma 

(1,452 kilometers), and Bangladesh (4,339 kilometers). Although India and Sri Lanka do not 

share a land boundary, the narrowest distance between the two countries is only 64 kilometers 

across the Palk Strait. 

Disputed Territory: Most of Jammu and Kashmir is contested with Pakistan, and the Aksai 

Chin area of Jammu and Kashmir is disputed with China, as is the border of Arunachal Pradesh 

state in northeast India. Nepal claims a 75-square-kilometer-area called Kalapani. Possession of 

recently emerged New Moore Island (South Talpatty) in the Bay of Bengal has been disputed by 

Bangladesh, and much of the border with Bangladesh is not demarcated. 

Length of Coastline: India’s total coastline is 7,516 kilometers in length, which comprises 5,422 

kilometers for the mainland, 132 kilometers for the Lakshadweep Islands, and 1,962 kilometers 

for the Andaman and Nicobar Islands. 

Maritime Claims: Under the 1982 United Nations Convention on the Law of the Sea, India has 

a 200-nautical-mile exclusive economic zone, a 12-nautical-mile territorial sea, a 24-nauticalmile contiguous zone, and a legal continental shelf extending to a depth of 2,500 meters or to the 

end of the continental margin. 

Topography: There are three main geological regions: the Indo-Gangetic Plain and the 

Himalayas—collectively known as North India—and the Peninsula, or South India. These and 

other portions of India can be classified into diverse physiological regions that include highlands, 

plains, deserts, and river valleys. The country’s lowest elevation is zero meters at the Indian 

Ocean, and the highest is 8,598 meters at Kanchenjunga, which is the third highest mountain in 

the world and located in the Himalayas. 

Principal Rivers: India’s longest rivers are the Brahmaputra and Indus, which are both 2,896 

kilometers long, although neither is entirely within India. Other major rivers are the Ganga 

(Ganges, 2,525 kilometers), Godavari (1,465), Kaveri (Cauvery, 800), Krishna (1,401), 

Mahanandi (851), Narmada (1,312), and Yamuna (1,370). 

Climate: Climate in India varies significantly from the permanently snow-capped Himalayas in 

the north to the tropics in the south. The country has four seasons. December to February is 

relatively dry and cool, March to May is dry and hot, from June to September predominating 

southwest maritime winds bring monsoon rains to most of the country, and in October and 

November there are retreating dry monsoons originating from the northeast. Average 

temperatures range from 12.5° C to 30° C in the northwest, 17.5° C to 30° C in the north and 

northeast, and 22.5° C to 30° C in the south. Average annual rainfall is around 1,000 to 1,500 

millimeters for much of the country, but can be quite low in some parts of the northwest (150 to 

300 millimeters annually) and very high in the northeast and along the west coast (1,500 to 2,500 

millimeters annually). 

Natural Resources: Commercially important natural resources include arable land, bauxite, 

chromite, coal (fourth-largest reserves in the world), diamonds, iron ore, limestone, manganese, 

mica, natural gas, petroleum, and titanium ore. 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

Land Use: In 2000 the total arable land and land planted under permanent crops combined was 

1,697,000 square kilometers, and total irrigated land was 548,000 square kilometers. The total of 

non-arable land and land not under permanent crops was 1,276,190 square kilometers.

Environmental Factors: India is vulnerable to various natural hazards, particularly cyclones 

and annual monsoon floods, and various combinations of poverty, population growth, increasing 

individual consumption, industrialization, infrastructural development, poor agricultural 

practices, and resource maldistribution have led to substantial human transformation of India’s 

natural environment. An estimated 60 percent of cultivated land suffers from soil erosion, 

waterlogging, and salinity. It is also estimated that between 4.7 and 12 billion tons of topsoil are 

lost annually from soil erosion. From 1947 to 2002, average annual per capita water availability 

declined by almost 70 percent to 1,822 cubic meters, and overexploitation of groundwater is 

problematic in the states of Haryana, Punjab, and Uttar Pradesh. Forest area covers 19.4 percent 

of India’s geographic area (63.7 million hectares). Nearly half of the country’s forest cover is 

found in the state of Madhya Pradesh (20.7 percent) and the seven states of the northeast (25.7 

percent); the latter is experiencing net forest loss. Forest cover is declining because of harvesting 

for fuel wood and the expansion of agricultural land. These trends, combined with increasing 

industrial and motor vehicle pollution output, have led to atmospheric temperature increases, 

shifting precipitation patterns, and declining intervals of drought recurrence in many areas. The 

Indian Agricultural Research Institute has estimated that a 3° C rise in temperature will result in 

a 15 to 20 percent loss in annual wheat yields. These are substantial problems for a nation with 

such a large population depending on the productivity of primary resources and whose economic 

growth relies heavily on industrial growth. 

Civil conflicts involving natural resources—most notably forests and arable land—have occurred 

in eastern and northeastern states. By contrast, water resources have not been linked to either 

domestic or international violent conflict as was previously anticipated by some observers. 

Possible exceptions include some communal violence related to distribution of water from the 

Kaveri River and political tensions surrounding actual and potential population displacements by 

dam projects, particularly on the Narmada River. 

Time Zones: All of India is under a single time zone, which is Greenwich Mean Time plus 5.5 

hours. 

SOCIETY 

Population: The 2004 estimate of India’s total population was 1,065,070,607. According to the 

2001 Indian census, the total population was 1,028,610,328, a 21.3 percent increase from 1991 

and 2 percent average growth rate from 1975 to 2001. India has nearly 17 percent of the world’s 

population, second only to China. About 72 percent of the population resided in rural areas in 

2001, yet the country has a population density of 324 persons per square kilometer. Major states 

have more than 400 persons per square kilometer, but population densities are around 150 

persons or fewer per square kilometer in some border states and insular territories. 

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Demography: In 2001 India’s birthrate was 25.4 per 1,000 population, its death rate was 8.4 per 

1,000, and its infant mortality rate was 66 per 1,000 live births. In 1995 to 1997, India’s total 

fertility rate was 3.4 children per woman (4.5 in 1980–82). According to the 2001 Indian census, 

35.3 percent of the population was under 14 years of age, 59.9 percent between 15 and 64, and 

4.8 percent 65 and older (the 2004 estimates are, respectively, 31.7 percent, 63.5 percent, and 4.8 

percent); the sex ratio was 933 females per 1,000 males. In 2004 India’s median age was 

estimated to be 24.4. From 1992 to 1996, overall life expectancy at birth was 60.7 years (60.1 

years for males and 61.4 years for females) and was estimated to be 64 years in 2004 (63.3 for 

males and 64.8 for females). 

Ethnic Groups: The exact number of ethnic groups depends on source and method of counting, 

and scholars estimate that only the continent of Africa exceeds the linguistic, cultural, and 

genetic diversity of India. Seventy-two percent of the population is Indo-Aryan, 25 percent 

Dravidian, and 3 percent Mongoloid and other. Each of these groups can be further subdivided 

into various—and changing—combinations of language, religion, and, very often, caste. The 

Hindu caste system is technically illegal but widely practiced (generally more in rural areas) and 

comprises four major categories (varnas) that are found India-wide but are often subdivided into 

hundreds of sub-categories (jatis), many of which are often found only in specific areas. Similar 

hereditary and occupational social hierarchies exist within Sikh and Muslim communities but are 

generally far less pervasive and institutionalized. About 16 percent of the total population is 

“untouchable” (Scheduled Castes is the more formal, legal term; Dalit is the term preferred by 

“untouchables” and roughly translates to downtrodden); around 8 percent of the population 

belongs to one of 461 indigenous groups (often called Scheduled Tribes for legal purposes, 

although the term adivasi is commonly used). 

Languages: The total number of languages and dialects varies by source and counting method, 

and many Indians speak more than one language. The Indian census lists 114 languages (22 of 

which are spoken by one million or more persons) that are further categorized into 216 dialects 

or “mother tongues” spoken by 10,000 or more speakers. An estimated 850 languages are in 

daily use, and the Indian Government claims there are more than 1,600 dialects. 

Hindi is the official language and the most commonly spoken, but not all dialects are mutually 

comprehensible. English also has official status and is widely used in business and politics, 

although knowledge of English varies widely from fluency to knowledge of just a few words. 

The teaching of Hindi and English is compulsory in most states and union territories. Twentytwo languages are legally recognized by the constitution for various political, educational, and 

other purposes: Assamese, Bengali, Bodo, Dogri, Gujarati, Hindi, Kannada, Kashmiri, Konkani, 

Maithali, Malayalam, Manipuri, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Santhali, Sindhi, 

Tamil, Telugu, and Urdu. Numerous other languages are recognized by individual states but not 

officially recognized by the central government, and linguistic issues related to education, 

employment, and politics are sometimes politically contentious. Indeed, some state borders are 

based on linguistic lines. The most commonly spoken languages are Hindi (40.2 percent of the 

population), Bengali (8.3 percent), Telugu (7.9 percent), Marathi (7.5 percent), and Tamil (6.3 

percent). 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

Religion: Approximately 80.5 percent of the population is Hindu, 13.4 percent Muslim, 2.3 

percent Christian, 1.9 percent Sikh, 0.8 percent Buddhist, and 0.4 percent Jain; another 0.6 

percent belongs to other faiths, such as Zoroastrianism and numerous religions associated with 

Scheduled Tribes. These percentages have changed little since the 1961 census. In spite of 

Hinduism’s inherent pantheism, adherents often focus much of their devotion on a specific 

deity—such as Vaishnivites (those primarily devoted to Vishnu and related deities) and Shaivites 

(Shiva and related deities)—but these denominations rarely have notable social, economic, or 

political consequences. The Indian constitution confers religious freedom for individuals and 

prohibits religious discrimination, but in spite of this, there have been enduring tensions—and 

occasional conflict—among religious communities, most notably between Hindus and Muslims. 

Education and Literacy: In 2000 the adult literacy rate (percent aged 15 or older) was 58.5 

percent (72.3 percent for males, 44.4 percent for females). These figures have all nearly doubled 

since 1961 and are higher than in most other South Asian nations, but they are still far lower than 

in most East Asian nations. In 2001 the combined primary, secondary, and tertiary enrollment 

ratio was 55 percent of the population of official school age for the three levels. Total 

government expenditures on education in 2001 were Rs841.8 billion (US$17.3 billion), which 

was 13.2 percent of all government expenditures and 4 percent of gross domestic product (GDP). 

Since the 1950s, government expenditures on education have increased steadily, as have the 

number of educational institutions from the primary to the university level. 

In most states and union territories, primary school covers grade levels (called “standards”) 1 to 

8 and secondary education, standards 9 and 10; all states have senior secondary education for 

standards 11 and 12. As of 1997, most states and union territories had no compulsory level of 

education. Twelve states and union territories legally require completion of either the fifth- or 

eighth-grade level, yet drop-out rates are high even in compulsory stages. The majority of states 

and union territories have free education up to the seventh-grade level, and the majority of 

primary schools are government funded and managed. However, less than half of secondary 

schools are government funded and managed. Indeed, 34 percent of secondary institutions are 

government funded but privately managed, and 25 percent are privately managed without 

government funding. 

Health: National health indicators are generally lower than in many developing countries but 

have shown dramatic improvement nationwide, although there are variations among states in 

India. India’s 2002 Human Development Index (HDI is a measure of income, education, and 

health developed by the United Nations) of 0.595 was an improvement over its 1975 HDI of 

0.411, but India ranked 127th in the world out of 177 countries (the 2002 world average HDI was 

0.729). An estimated 21 percent of the total population is malnourished, and common diseases 

include malaria, filariasis, leprosy, cholera, pneumonic plague, tuberculosis, trachoma, goiter, 

and diarrheal diseases. According to government estimates, about 0.5 percent of the population 

(about 5.1 million) was infected by the human immunodeficiency virus (HIV) in 2003. In 

November 2004, the head of the United Nations Acquired Immune Deficiency Syndrome 

program (UNAIDS) claimed that India, along with China and Russia, is on the “tipping point” of 

having small, localized AIDS epidemics become major ones that could detrimentally affect the 

world’s capacity to prevent and treat the disease.

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The above facts and figures are associated with substantial poverty and relatively low 

government health expenditures. In 2001 public health expenditures were 3.1 percent of total 

general government expenditures but only 17.9 percent of total health expenditures. By contrast, 

private expenditures were 82.1 percent of total health expenditures, all of which was out-ofpocket expense. Furthermore, total health expenditures per capita represented 5.1 percent of 

gross domestic product (GDP) in 2001, but public health expenditures were only 0.9 percent of 

GDP, and private health expenditures were 4.2 percent of GDP. The population’s health is also a 

function of the relatively low number of health personnel and low level of infrastructure, which 

are on a par with many countries in Sub-Saharan Africa. In 1991 public and private primary 

health centers included more than 14,000 hospitals, 28,000 dispensaries, and 838,000 beds. In 

1998 there were 52.2 medical practitioners per 100,000 persons, and in 1994 there were 69 

hospital beds per 100,000 persons. In 1992 India had 48 physicians and 45 nurses per 100,000 

persons. 

Welfare: Generally, central (union) government welfare expenditures are a substantial portion of 

the official budget, and state and local governments play important roles in developing and 

implementing welfare policies. In 2000 union government expenditures on social services 

(includes education, health, family welfare, women and child development, and social justice and 

empowerment), rural development, and basic minimum services were approximately US$7.7 

billion (Rs361.7 billion), which was 11.1 percent of total government expenditures and 1.7 

percent of gross domestic product (GDP). Furthermore, the union and state governments 

maintain a plethora of reserved seats in various political and education institutions for lower 

castes, indigenous persons, and others based on their percentage of the population. Finally, 

various innovative development programs have been developed—often at state or local levels—

for social development and the empowerment of women and lower castes, and the state of Kerala 

is internationally known for its noteworthy success in public welfare. 

ECONOMY 

Overview: From 1947 to the late 1970s, the economy was characterized by central government 

planning and import substitution industries, and economic production was transformed from

primarily agriculture, forestry, fishing, and textile manufacturing to various heavy industries, 

transportation, and telecommunications. Agriculture still employs nearly 60 percent of the 

population, but accounts for only 22.6 percent of gross domestic product (GDP). By the 1980s 

and 1990s, private-sector initiatives noticeably increased, and information technology emerged 

in importance but has proven vulnerable to changes in foreign demand, out-migration of 

information technology labor, and a weak but growing domestic market for information 

technology goods and services. 

In the 1980s, government liberalization measures—such as privatization of government 

industries and reduced tariffs on imported capital goods—have been credited for 1990s economic 

growth rates of around 4 to 7 percent annually, nearly double the 3 percent growth rates that 

characterized the previous 40 years. Furthermore, foreign direct investment has increased to an 

annual range of US$3 billion to US$5 billion, but is seen as hampered by corruption and 

bureaucratic inefficiency and remains well behind foreign direct investment in neighboring 

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China. Furthermore, India accounts for less than 1 percent of world trade in spite of having 18 

percent of the world’s population, and the informal economy accounts for 23.1 percent of gross 

national income (the new term for gross national product). A new union government was elected 

in May 2004 and is under significant pressure to provide greater economic development in rural 

areas. 

Gross Domestic Product (GDP)/Power Purchasing Parity (PPP): In 2002 GDP was 

US$496.8 billion (Rs24.2 trillion). Since the early 1990s, GDP has grown 4 to 7 percent 

annually, which is higher than GDP growth for the European Union, the United States, or the 

world as a whole. In 2003 PPP per capita was US$2,880. 

Government Budget: Government revenues and expenditures have grown substantially since 

the early 1990s. According to India’s Ministry of Finance, in 2002–03 tax and non-tax revenues 

were US$49.7 billion (Rs2.3 trillion), total expenditures were US$88.9 billion (Rs4.1 trillion), 

and the fiscal deficit was US$31.1 billion (Rs1.5 trillion). Government expenditures generally 

have been highest in the energy, transportation, and social service sectors, which receive about 

two-thirds of total government expenditures. Tax revenues have grown annually around 10 

percent or more since the early 1950s, and tax receipts have increased even more substantially 

since the mid-1990s with accelerated economic growth and improved government revenue 

collection capacities. For example, total tax revenues were US$20.8 billion for 1994–95 and 

US$35.2 billion for 2002–03. Fiscal deficits, however, have also increased from US$17.8 billion 

in 1994–95 to an estimated US$31.1 billion for 2002–03. 

Agriculture, Forestry, and Fishing: Since independence, India has changed from a food 

importer to a food exporter, but agriculture has declined as a percentage of gross domestic 

product (GDP; from 32.8 percent in 1991 to 22.6 percent in 2001) and total exports (from 18.5 

percent to 14.2 percent). Around 46 percent (141 million hectares) of total land is cultivated, and 

16 percent is double cropped (49 million hectares), effectively giving India 190 million hectares 

of cultivated land. Another 4.8 percent (14.7 million hectares) is permanent pastureland or 

planted in tree crops or groves. Agriculture continues to employ the major, but declining, 

proportion of workers (from 69.4 percent in 1951 to 58.4 percent in 2001) and agricultural 

employment varies substantially among states (from 38.9 percent of workers in Punjab to 77.3 

percent in Bihar). Most farmers cultivate plots of two hectares or less, and large landholders have 

only been divested in a few areas. Agricultural output—and the food security of millions—

remains susceptible to often-tenuous access to arable land, credit, fertilizers, and irrigation as 

well as to natural conditions, particularly annual variations in rainfall. 

The remarkable growth in agricultural output is largely due to Green Revolution inputs such as 

high-yield seed varieties and fertilizers. Rice, wheat, pulses, and oilseeds dominate production, 

but millet, corn, and sorghum are also important crops. The main commercial crops are sugar 

(India is the world’s second largest producer), rice (world’s second largest exporter), wheat, 

cotton, and jute. However, the rate of output for several crops may have peaked, and problems 

with soil degradation, rural infrastructure, and declining per capita agricultural holdings may 

prevent the rate of agricultural growth from keeping pace with increasing rates of population 

growth and per capita food consumption. 

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In 1991, 2.1 percent of the population was employed in forestry, fishing, livestock, hunting, and 

related activities. As a percentage of GDP, forestry has declined from 1.5 percent in 1993–94 to 

1.1 percent in 2000–01. In the same period, fishing changed little from 1.1 percent to 1.2 percent 

of GDP. 

Mining and Minerals: Since the early 1990s, mining has accounted for around 2 to 3.5 percent 

of gross domestic product (GDP) and employed less than 1 percent of the labor force. The 

majority of minerals produced by India are bauxite, copper, iron, lead, mica, rare earths, uranium

ore, and zinc. 

Industry and Manufacturing: For decades, Indian industries were largely import substitution 

industries producing textiles, steel and aluminum, fertilizers and petrochemicals, and electronics 

and motor vehicles. From 1950 to 2000, industrial output increased from 15 to 27 percent of 

gross domestic product (GDP), but the sector continues to employ only about 10 percent of the 

workforce. Several industries face problems with power availability, high interest rates, customs 

delays, and regulatory obstacles. Domestic automobile manufacturing has increased substantially

since the end of government licensing of automobile production in 1995, and car sales rose 50 

percent by 2000. Import liberalization has also led to lowered sales for domestic industries, such 

as computer hardware and cement. 

Energy: India is the world’s sixth largest energy consumer, and the nation faces substantial 

challenges in meeting both present and expected demands for energy, particularly electric power. 

India has a growing nuclear power industry and abundant hydroelectric power (particularly in 

North India), and it is the world’s third largest producer of coal (which provides more than half 

of domestic energy needs). But it is also a growing consumer and importer of petroleum and 

natural gas, and consumption of these products is expected to increase substantially. The 

government appears to be addressing petroleum demand by limiting imports and by expanding 

domestic exploration and production, but several factors provide little optimism that such 

measures will be sufficient for future demands. The government continues to pursue various 

reforms in the electricity sector, but it has abandoned full privatization of the state-owned 

petroleum industry, raising questions about its commitment to reforms in the petroleum sector. 

Finally, India faces economic competition from China over potential oil and gas resources in the 

Indian Ocean that both countries need for their economic development. 

Services: From 1951 to 2000, business, information technology, banking, communications, 

hotels, and other services increased from 27 to 48 percent of gross domestic product (GDP), but 

most of this growth occurred in the 1990s. The percentage of the Indian workforce employed in 

services was 23.5 percent in 2000. Information technology services have emerged as an 

important element of the economy, but the information technology sector is believed to be 

vulnerable to out-migration of information technology professionals, particularly when the 

global economy is strong. 

Banking and Finance: Under 1990s liberalization measures, restrictions on foreign direct 

investment have been relaxed, and foreign banks have been allowed to have greater shareholding 

in domestic banks (up to 49 percent), although foreign banks have faced some difficulties in 

acquiring such stakes. In 2002 government legislation enhanced banks’ capacity to act against 

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debtors, a measure that should help banks in their attempts to address the high level of bad debt 

held by Indian companies. 

Tourism: Tourism industry analysts estimate that India is one of the world’s fastest growing 

tourism markets with an annual growth rate of approximately 8.8 percent. Annual tourist inflows 

range between 2 and 2.5 million, but tourism has proven to be susceptible to issues such as 

communal conflict between Hindus and Muslims and occasional spikes in tensions between 

India and Pakistan. 

Labor: The total number of persons in the labor force is unknown. According to official figures, 

from 1981 to 2001 the total number of workers grew more than 50 percent from approximately 

245 million to 402 million persons. These figures count only those who are considered to have 

“engaged in economically productive activity for 183 days or more.” The actual number of 

persons in the labor force is likely to be much higher. From 1983 to 1994, the nation’s 

unemployment rate declined from 8.3 percent to 6 percent and then increased to 7.3 percent by 

2000. Unemployment rates have historically been higher in urban areas, but rural and urban 

unemployment rates became nearly equal by 2000 (7.2 and 7.7 percent, respectively). 

Foreign Economic Relations: India’s principal export and import trades are with the European 

Union, the United States, and Japan. Most aid is provided by the Aid-to-India Consortium,

consisting of the World Bank Group, Austria, Belgium, Britain, Canada, Denmark, France, 

Germany, Italy, Japan, the Netherlands, Norway, Sweden, and the United States. Japan is the 

largest aid granter and lender. India has its own aid programs with Bangladesh, Bhutan, Nepal, 

and Vietnam. 

Imports: Principal imports are petroleum and petroleum products, capital goods, uncut gems, 

machinery, and fertilizer. Major imports are from the United States, the European Union 

(particularly Belgium), Singapore, the United Kingdom, and Saudi Arabia. In 2003 imports 

totaled US$64.5 billion, a substantial increase over 2002 imports of US$54.2 billion. 

Exports: Principal exports are textile goods, finished gems and jewelry, engineered goods 

(including iron and steel), chemicals, and leather and leather goods. Main destinations of exports 

are the United States, the United Kingdom, China (particularly Hong Kong), Japan, and the 

European Union (particularly Germany). In 2003 total exports were valued at US$52.5 billion, a 

substantial increase over 2002 exports of US$47.7 billion. 

Trade Balance: India’s negative trade balance has grown steadily since the late 1980s. In 2003 

exports were US$52.5 billion and imports were US$65.4 billion, resulting in a negative trade 

balance of US$12.9 billion. 

Balance of Payments: Before 2002 India’s surpluses in the capital account were offset by 

deficits in the current account, but since 2002 India has had surpluses in the current and capital 

accounts, leading to an accumulation of foreign reserves. The current account surplus is a small 

percentage of gross domestic product (0.5 percent in 2003) and has been the result of non-factor 

services and private transfers exceeding trade deficits. Growth in foreign direct investment is 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

largely responsible for steady growth in the capital account, and external commercial borrowings 

and assistance make up most net outflows. 

External Debt: India’s total external debt has increased from US$83.8 billion in 1991 to 

US$112.1 billion in 2003, but external debt declined as a percentage of gross domestic product 

(GDP) in the same time period (from 28.7 to 20.2 percent). Furthermore, in 1991 India was the 

world’s third highest debtor nation, but it had dropped to eighth by 2002. 

Foreign Investment: Foreign direct investment in India has increased from about US$97 million

in 1991 to US$3.6 billion for 2003, partly because of various liberalization measures, such as 

reduced tariffs and relaxed restrictions on foreign ownership of domestic industries. 

Currency and Exchange Rate: The rupee (Rs) has depreciated steadily against the dollar since 

the 1970s. The average annual exchange rate for 2003 was US$1=Rs46.59 and US$1=Rs31.29 

for 1993. In December 2004, the exchange rate was approximately US$1=Rs44. Since the late 

1990s, the rupee has been stable against the euro as a result of the weakening of the U.S. dollar 

and worldwide shift away from U.S. dollar assets. 

Fiscal Year: India’s fiscal year runs from April 1 to March 31. 

TRANSPORTATION AND TELECOMMUNICATIONS

Overview: India’s transportation infrastructure has undergone tremendous change since 

independence. While traditional, non-mechanized transport means are still quite common 

(elephants and camels are not an uncommon sight even in large urban areas), roads, railroads, 

ports, and aviation continue to expand. India now has the world’s second largest road network, 

and its rail network is among the most used in the world for passengers and freight. Furthermore, 

increasing incomes and government liberalization measures have contributed to tremendous 

growth in the numbers of automobiles, two- and three-wheeled vehicles, private and public 

buses, and urban rail networks. However, there are significant, accompanying problems with 

pollution, increasing traffic density, unauthorized transportation providers, and high numbers of 

traffic fatalities. 

Roads: There were about 3.3 million kilometers of roads by 2002, of which 1.4 million 

kilometers were surfaced and more than 1 million kilometers were covered with gravel, crushed 

stone, or earth. More than 150 highways are rated as national highways and carry about 40 

percent of road traffic on a total length of 65,569 kilometers. Around 85 percent of all passenger 

traffic and 70 percent of all freight traffic travel by road. By 2007, highways are expected to 

expand by 13,146 kilometers, with road projects aimed at linking the country’s major cities and 

spanning the entire country north-south and east-west. Modes of road transport are a mix of 

traditional and modern means. Urban transit is dominated by motor vehicles, with increasing use 

of automobiles, minibuses, buses, trucks, and particularly two- and three-wheeled vehicles. 

However, bullocks, camels, elephants, and other beasts of burden are seen on Indian roads, even 

in urban areas. 

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Railroads: All railroads are government-owned and operated by Indian Railways. In 2002 total 

route length was 63,028 kilometers, and double and multiple tracks resulted in a total track 

length of 108,706 kilometers. Of the total track length, 86,526 kilometers were 1.676-millimeter 

gauge, 18,529 kilometers were 1.000-millimeter gauge, and 3,651 kilometers were 0.762- and 

0.610-millimeter gauge. About 16,000 kilometers were electrified, mostly 1.676 millimeter 

gauge. The rail system includes 7,566 locomotives, 37,840 coaches, 222,147 freight wagons, 

6,853 stations, and nearly 116,000 bridges. Both passenger and freight carriage continue to 

expand annually, and the rail system is the fourth most heavily used in the world, both for 

passengers and freight. For the financial year 2004, Indian Railways carried 557 million freight 

tons and more than 5 billion passengers. There are some high-speed routes and increasing use of 

them. Most rolling stock and other components are still domestically produced, but they are 

increasingly manufactured through commercial agreements with foreign companies. There have 

been major government investments in modernization since the early 1990s, but Indian Railways 

has also experienced dwindling government budgetary support and has suffered from the dual 

role of being both a public utility and a commercial enterprise. 

India also has several urban passenger rail systems. Kolkata (Calcutta) has a full metro system, 

and New Delhi’s metro system is operational and expanding. Chennai has a rapid transit system, 

and there are suburban rail networks in Bangalore, Mumbai (Bombay), and New Delhi. There 

are plans for metro, light rail, or both in Bangalore, Coimbatore, Hyderabad, Jaipur, Lucknow, 

Mumbai, and Pune. 

Ports: India has 12 major ports and 185 minor and intermediate ports along the country’s 

coastline. There are also 7 shipyards under the control of the central government, 2 shipyards 

controlled by state governments, and 19 privately owned shipyards. The major ports handled 

344.6 million tons of cargo for the financial year 2004, with Chennai, Kandla, and 

Vishakhapatnam carrying the greatest tonnage. Major ports can collectively handle 390 million 

tons of cargo annually, and port operations have improved since the mid-1990s. All major ports, 

except one (Ennore), are government administered, but private-sector participation in ports has 

increased. In 2000 there were 102 shipping companies operating in India, of which five were 

privately owned and based in India and one was owned by the government (Shipping 

Corporation of India). In 2000 there were 639 government-owned ships, including 91 oil tankers, 

79 dry cargo bulk carriers, and 10 cellular container vessels. Indian-flagged vessels carried about 

15 percent of overseas cargo at Indian ports for financial year 2003. 

Inland and Coastal Waterways: According to official sources, India has approximately 14,500 

kilometers of inland waterways, but the transportation potential is vastly underused. More than 

3,600 kilometers are navigable by large vessels, although only about 2,000 kilometers are used. 

For purposes of navigational development and conservation, three inland waterways have been 

declared national waterways: the Allahabad-Haldia portion of the Ganga-Bhagirathi-Hooghly 

rivers (1,620 kilometers), the Sadiya-Dhubri section of the Brahmaputra River (891 kilometers), 

and a combination of western canals (205 kilometers). 

Civil Aviation and Airports: The government owns two airlines (Air India and Indian Airlines) 

and one helicopter service (Pawan Hans), and there are twelve privately owned airlines. Private 

airlines account for about 45 percent of domestic air traffic, and as of 2003 the government had 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

divested more than 50 percent of the equity in both government-owned airlines. Of 288 airports, 

208 have permanent-surface runways, and there are two runways of more than 3,659 meters. The 

Airports Authority of India administers 126 airports: 11 international, 89 domestic, and 26 for 

defense purposes. In 2003 these airports collectively handled approximately 500,000 flights, 40 

million passengers, and 900,000 tons of cargo. Major international airports are located in Kolkata 

(Calcutta), Madras (Chennai), Mumbai (Bombay), New Delhi, and Thiruvananthapuram

(Trivandrum). There is also international service from Bangalore, Guwahati, Hyderabad, and 

Mamargao, and there are major regional airports at Ahmadabad, Allahabad, Chandigarh, Kochi 

(Cochin), Nagpur, Pune, Srinagar, and Thiruvananthapuram. 

Pipelines: In 2003 India had an estimated 5,798 kilometers of gas pipelines, 1,195 kilometers for 

liquid petroleum gas, 5,613 kilometers for oil, and 5,567 kilometers for refined products. India 

and Iran have discussed constructing a gas pipeline, but the Indian government and oil industry 

analysts have expressed concerns about the pipeline’s security because of its proposed route 

through conflict-prone areas of Pakistan. 

Telecommunications: India is witnessing possibly its greatest period of change in 

communications, with increasing shifts from government to private providers and greater public 

use of various technologies. From 1995 to 2003, the number of Internet users increased from

250,000 to 18.4 million. Since the late 1990s, the number of telephones, mobile phones, and 

personal computers has increased substantially. In 2004 there were 40.9 million telephones and 

26.2 million mobile phones, and in 2003 there were an estimated 7.5 million personal computers. 

Some basic telephone services were opened to private-sector competition in 1994, and portions 

of state-owned telecommunications services have been purchased by private entities.

Government-owned radio (All India Radio) and television (Doordarshan) networks have 

extensive national and local coverage, but domestic and international private television networks 

are increasingly prolific through cable and satellite. According to government figures, there 

were 79.4 million television households in 2001. From 1991 to 2002, the number of radios 

roughly doubled to an estimated 111 million, and radio remains the main source of news for 

most Indians. 

GOVERNMENT AND POLITICS 

Government Overview: India is a democratic republic with a system of government legally 

based on the often-amended 1950 constitution. The central government is also known as the 

union government, and its structure is much like the British parliamentary system, with distinct, 

but interrelated executive, legislative, and judicial branches. State governments are structured 

much like the central government, and district governments exist in a variety of forms. The 

Indian parliament is a bicameral legislature composed of a lower house (the Lok Sabha or House 

of the People), with 543 popularly elected members and 2 members appointed by the president, 

and an upper house (the Rajya Sabha or Council of States), with 12 appointed members and 233 

members elected by state and union territory assemblies. Lok Sabha members serve five-year 

terms, and Rajya Sabha members serve six-year terms, with one-third of members up for election 

every two years. The legislature passes laws on constitutionally specified matters, such as central 

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government finances and constitutional amendments. The two houses have the same powers, but 

the Rajya Sabha’s power in the legislative process is subordinate to the Lok Sabha. 

India has both a prime minister and a president. Members of parliament and state legislative 

assemblies elect the president, currently A.P.J. Abdul Kalam, who was elected in 2002. Prime 

ministers are leaders of the majority party in parliament but are formally appointed by the 

president. In 2004 Manmohan Singh became prime minister when his Indian National Congress 

party defeated the Bharatiya Janata Party led by Singh’s predecessor as prime minister, Atal 

Bihari Vajpayee. Over time, political power has become increasingly concentrated in the prime 

minister and Council of Ministers (cabinet), although they are responsible to the parliament. The 

president’s duties are mostly ceremonial, although the president formally approves the prime 

minister and also approves the Council of Ministers based on the prime minister’s advice. 

Furthermore, all bills require presidential approval before becoming law. The vice president is ex 

officio chairperson of the Rajya Sabha and acts in place of the president when the president is 

unable to perform his or her duties. 

The Supreme Court is the top legal entity, and it is composed of a chief justice appointed by the 

president and 25 associate judges also appointed by the president in consultation with the chief 

justice. The Supreme Court has numerous legal powers, such as appellate jurisdiction over all 

civil and criminal proceedings, with the potential of influencing interpretation of the constitution.

The parliament and Supreme Court have maintained a contentious relationship on issues related 

to judicial review and parliamentary sovereignty. Below the Supreme Court are high courts, 

followed by a hierarchy of subordinate courts, and some states also have panchayat (villagelevel) courts that decide civil and criminal matters. Some high courts serve more than one state, 

and all are independent of state legislatures and executives. The judiciary is regarded as slow and 

cumbersome but is also widely respected and often takes an activist role in protecting citizens’ 

rights. 

Since independence, India has experienced a plethora of political successes and problems. 

Corruption, communal conflicts, and rural economic development remain difficult political 

issues. Furthermore, some analysts believe the government’s inclusive design could undermine 

governing capacity and national unity as political parties and social groups press for their 

respective parochial interests. Yet the country maintains a democratic system of government 

with civil liberties that are often lacking in many poor, ethnically diverse societies. India also has 

an impressive record of economic development and a demonstrable commitment to correcting 

traditional social oppression. A wide variety of social groups have held elected office, and 

women, Sikhs, Muslims, and dalits have served as either president or prime minister. In 2004 

there were 45 women elected to the Lok Sabha, and both dalits and indigenous groups have a 

certain minimum number of reserved seats in the Lok Sabha and state assemblies based on their 

respective percentages of the population. 

Administrative Divisions: There are twenty-eight states and seven union territories including 

the national capital territory of New Delhi. State boundaries are often based on language or other 

social characteristics, and union territories tend to be geographically smaller and less populous 

than states. States and union territories contain 601 districts that are further subdivided into 

townships containing from 200 to 600 villages. The union government exercises greater control 

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over union territories than over states, but the division of power between the union and state 

governments can appear blurred and even chaotic at times. Relationships between some state 

governments and the union government have been contentious, particularly when state 

governments are run by political parties that oppose the governing party or coalition in 

parliament. The tremendous variations in economic and social development among states suggest 

that state governments can have a greater influence on their populations than the union 

government. However, the union government still exercises considerable influence on states 

through numerous financial resources and its authority to assume control of states during times 

of emergency (called President's Rule), which the union government has done nearly 100 times 

since 1947. 

Provincial and Local Government: Union territories have a council of ministers, a legislature, 

and a high court, but they are largely governed by the central or union government through a 

lieutenant governor or chief commissioner appointed by the prime minister. The structure of state 

governments largely mirrors that of the union government, with each state having a legislative 

assembly, chief minister, and high court. State government policies are largely implemented 

through state-level agencies, but union government agencies are also prevalent at local levels. 

District and local governments are generally weak, although some states have attempted to 

establish traditional village councils (panchayats) to address local matters.

State legislatures are usually unicameral with a legislative assembly composed of members 

elected for five-year terms. Bicameral state legislatures also have a legislative council that is 

largely advisory in its capacities, with members directly elected, indirectly elected, or nominated. 

States’ chief ministers are the leaders of majority parties in state legislatures, and just as the 

prime minister is accountable to parliament, chief ministers are answerable to state legislatures. 

However, the popularity and party support of some chief ministers enable them to have some

autonomy from their state legislature and a degree of influence that rivals that of the union 

government. States also have governors that are appointed by the president and accountable to 

the dominant political party in parliament. Although the position is largely honorific, governors 

do have important powers such as formal approval of chief ministers and their cabinets as well as 

the authority to recommend that the union government take control of a state government during 

times of emergency (President’s Rule). 

Judicial and Legal System: The legal system is derived from English common law and based 

on the 1950 constitution. Judges decide cases, and there is no trial by jury. Defendants can 

choose counsel independent of the government, and the government provides free legal counsel 

for defendants unable to afford such. The judiciary enforces the right to fair trial, and there are 

effective channels for appeal, but the judicial system is so overburdened with a case backlog that 

some courts barely function. In non-criminal matters, the government does not interfere with the 

personal status laws of Muslims and other communities on matters dealing with family law, 

inheritance, divorce, and discrimination against women. 

The Indian constitution contains civil liberties called Fundamental Rights that are guaranteed to 

all citizens and include equality before the law and freedoms of speech, expression, religion, and 

association. Freedom of the press is not explicitly stated but is widely interpreted as included in 

the freedoms of speech and expression. The Fundamental Rights were also created with the 

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objective of addressing historical social injustices and legally prohibit bonded labor, human 

trafficking, and discrimination based on religion, sex, race, caste, and birthplace. Still, the 

government has the authority to limit civil liberties in order to preserve public order, protect 

national security, and for other reasons. 

Electoral System: The Election Commission is the independent government body that 

supervises parliamentary and state elections, which are massive and sometimes marred by 

violence. Elections for state assemblies and the Lok Sabha are held every five years unless called 

earlier, such as through a no-confidence vote of the government by the Lok Sabha. Indeed, 

elections are often held before the five-year limits because governments have often had difficulty 

staying in power for the full five-year term. In the 2004 general elections, there were more than 

687,000 polling stations and 671.5 million voters. Since 1952, there have been 14 general 

elections, with voter turnout ranging from 55 to 64 percent of eligible voters. The legal voting 

age is 18. National and state legislative elections are similar to the British House of Commons 

and United States House of Representatives, in which members gain office by winning a 

plurality of votes in their local constituency. There are 543 parliamentary constituencies. The 

number of constituencies for state legislatures ranges from 32 to 403, with a total of 4,120 state 

constituencies nationwide. 

Politics and Political Parties: From independence (1947) until 1989, the left-of-center Indian 

National Congress and its factions dominated national politics. In the 1990s, the center-right 

Bharatiya Janata Party (BJP) and the centrist Janata Dal emerged as influential political parties, 

although Congress returned to power in May 2004 with Manmohan Singh as prime minister. 

There are numerous national and state parties. Among the best known and most prominent are: 

Akali Dal, All-India Anna DMK (AIADMK), Asom Gana Parishad, Bahujan Samaj Party (BSP), 

Bharatiya Janata Party (BJP), Communist Party of India (CPI), Communist Party of IndiaMarxist (CPI-M), Dravida Munnetra Kazhagam (DMK), Indian National Congress, Rashtriya 

Janata Dal (RJD), Samajwadi Party, Samata Party, Shiv Sena, and Telugu Desam.

Since the late 1960s, minority parties in Parliament have often been majority parties in state 

legislatures. Since 1989, single political parties have generally failed to win a parliamentary 

majority. As a result, parliament is often run by coalitions of political parties. It is believed that 

the emergence of multiparty governments is caused by voters’ frustration with political 

corruption and the fragmentation of electorate support among the growing number of political 

parties that represent specific parochial or local interests. Thus, those parties have strong support 

only in particular states. Furthermore, lower castes and other social groups have become more 

involved in politics as both voters and politicians. It remains to be seen if these trends are 

indicative of increasing social fragmentation as parties attempt to advance parochial interests or 

simply the result of a socially diverse population’s increasing participation in politics. 

Mass Media: India has more newspapers than any other nation, and newspaper readership 

annually grows by millions. There are a few state-run newspapers, but most print media are 

privately owned. There are more than 5,600 daily newspapers and more than 46,000 non-daily 

newspapers and print periodicals. In 2002 the government allowed print media to be up to 26 

percent foreign owned, but the most powerful publishers are joint stock companies that

frequently have other commercial and industrial holdings. Government authorities control most 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

television channels, yet the growth of private FM and television stations has marked a shift away 

from mostly state-run electronic media such as Doordarshan (television) and All India Radio. 

Foreign television channels are available through cable television or Indian broadcasters. An 

estimated 42.3 percent of Indian households have a television, and 52.2 percent of those have 

cable or satellite transmission. Similarly, the number of Internet users has rapidly to an estimated 

18.4 million users in 2003. Article 19 of India’s constitution ensures freedom of speech and 

expression, but Article 19 also allows the government to place “reasonable restrictions” on the 

exercise of those rights under various circumstances, such as maintenance of public order, state 

security, and public morality. India does have a high degree of press and speech freedom, and the 

nation is not generally regarded as a major violator of civil liberties by international human 

rights organizations. However, the government and police have been accused of violating 

journalists’ civil liberties. 

Foreign Relations: India’s Ministry of External Affairs is the governmental body that is 

officially responsible for making and implementing foreign policy, although India’s prime 

ministers have often exercised substantial influence in foreign policy decision making. India’s 

parliament and armed forces historically have had very limited roles in the formulation of foreign 

policy. 

India’s relations with all major nations traditionally have been based on principles of 

nonalignment and India’s own economic development. The overlapping domestic and external 

dimensions of India’s economic development continue to illustrate that many matters related to 

India’s ongoing formation as a nation have international security implications. Attempts to 

promote economic growth have pushed India from its previous emphasis on domestic selfsufficiency to a major promoter of free trade and economic liberalization. Nonalignment, 

however, has been seriously tested as a viable basis for foreign policy with the erosion of U.S. 

and Soviet tensions and with India’s interest in playing an influential role in regional and world 

politics. The demise of India’s long-term ally the Soviet Union cost India precious military and 

financial aid as well as international leverage. Some analysts argue that India’s demonstration of 

nuclear capabilities in 1998 was driven as much by domestic desires to protect Indian influence 

and prestige internationally as by regional security concerns. Post-Cold War shifts in military 

power and concerns with terrorism have led India to create stronger bilateral relations with 

China, Israel, the United States, and other nations. 

The Ministry of External Affairs has generally been most concerned with relations with 

neighboring Nepal, Sri Lanka, and particularly Pakistan on issues concerning unresolved 

borders, natural resource distribution, immigration, and insurgent activity. India has often tried to 

use treaties, alliances, and economic coercion to counter actions by neighbors that India regards 

as security threats, although China and Pakistan have generally thwarted such attempts. Indeed, 

India’s security concerns have been most pronounced with Pakistan, as exemplified by the two 

countries’ newfound nuclear rivalry, the 1999 Kargil War in Jammu and Kashmir, and the 2001 

terrorist attack on India’s parliament, which Pakistan is suspected of supporting. In spite of these 

difficulties, tensions between India and Pakistan have periodically thawed, and in late 2004 the 

two countries demonstrated surprising public interest in resolving their enduring dispute over 

Jammu and Kashmir. 

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Membership in International Organizations: India is a member of numerous international 

organizations including: African Development Bank, Asian Development Bank, Association of 

Southeast Asian Nations (dialogue partner), Bank for International Settlements, Colombo Plan, 

Commonwealth, Food and Agriculture Organization of the United Nations, Group of Six, Group 

of 15, Group of 24, Group of 77, International Atomic Energy Agency, International Bank for 

Reconstruction and Development, International Chamber of Commerce, International Civil 

Aviation Organization, International Confederation of Free Trade Unions, International 

Development Association, International Federation of Red Cross and Red Crescent Societies, 

International Finance Corporation, International Fund for Agricultural Development, 

International Hydrographic Organization, International Labour Organization, International 

Maritime Organization, International Monetary Fund, International Olympic Committee, 

International Organization for Migration (observer), International Organization for 

Standardization, International Red Cross and Red Crescent Movement, International 

Telecommunication Union, Interpol, Nonaligned Movement, Organisation for the Prohibition of 

Chemical Weapons, Organization of American States (observer), Permanent Court of 

Arbitration, South Asian Association for Regional Cooperation, United Nations, United Nations 

Conference on Trade and Development, United Nations Educational, Scientific and Cultural 

Organization, United Nations High Commissioner for Refugees, United Nations Industrial 

Development Organization, United Nations Monitoring, Verification and Inspection 

Commission, Universal Postal Union, World Confederation of Labor, World Customs 

Organization, World Federation of Trade Unions, World Health Organization, World Intellectual 

Property Organization, World Meteorological Organization, World Tourism Organization, and 

World Trade Organization. 

Major International Treaties: India is a signatory to numerous international treaties including: 

the Antarctic Treaty, Basel Convention on the Control of Transboundary Movements of 

Hazardous Substances, Biological and Toxin Weapons Convention, Chemical Weapons 

Convention, Conference on Disarmament, Convention on Biological Diversity, Convention on 

International Trade in Endangered Species of Wild Flora and Fauna, Convention on Migratory 

Species, Convention on the Physical Protection of Nuclear Material, Convention on the 

Prohibition of Military or Any Other Hostile Use of Environmental Modification Techniques, 

Convention on Wetlands of International Importance Especially as Waterfowl Habitat, Geneva 

Protocol, International Atomic Energy Association Safeguards Agreement, International 

Convention for the Regulation of Whaling, International Plant Protection Convention, 

International Tropical Timber Agreement 1983, International Tropical Timber Agreement 1994, 

Kyoto Protocol to the United Nations Framework Convention on Climate Change, Montreal 

Protocol on Substances that Deplete the Ozone layer, Nuclear Safety Convention, Partial Test 

Ban Treaty, Protocol of 1978 Relating to the International Convention for the Prevention of 

Pollution from Ships, Protocol on Environmental Protection to the Antarctic Treaty, United 

Nations Convention on the Law of the Sea, United Nations Convention to Combat 

Desertification, United Nations Framework Convention on Climate Change, and Vienna 

Convention for the Protection of the Ozone Layer. India is not a party to the Treaty on the NonProliferation of Nuclear Weapons (NPT) or the Missile Technology Control Regime. Indian 

governments have argued that the NPT does not reduce nuclear weapons proliferation by states 

already possessing nuclear weapons and that the NPT denies non-nuclear states the right to have 

nuclear weapons. 

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NATIONAL SECURITY 

Armed Forces Overview: The prime minister and Council of Ministers formulate national 

security policy. Below this level is the civilian bureaucracy, which exercises important influence, 

primarily through the Defence Minister’s Committee of the cabinet. The third tier of defense 

policy making is the Chiefs of Staffs Committee. These three levels are supported by intelligence 

organizations, scientific and technical advisory committees, defense production, and research 

and development groups. There are three military services—army, navy, and air force—and a 

number of paramilitary and reserve forces. The army has been the dominant service in terms of

both percentage of budget allotted to the armed forces and percentage of persons serving in the 

armed forces. 

The military has undergone tremendous change since the early 1990s, and the government and 

military have seriously appraised the military’s capabilities and organization. India’s great-power 

aspirations have been continually hindered by its capabilities, but the situation has changed with 

India’s emergence as a nuclear power after successful nuclear tests in May 1998 (India has since 

pledged a unilateral moratorium on nuclear testing). The armed services’ goals of force 

modernization (particularly the navy and air force) through new arms acquisitions and a 

“Revolution in Military Affairs” via information technology are constrained by budgetary, 

bureaucratic, personnel, and technological obstacles. Although the military has long desired to 

rely on domestically produced military goods, much matériel is imported. Indeed, the Defense 

Research and Development Organization (DRDO), the arm of the Department of Defence 

responsible for providing military hardware, has been criticized by both parliament and the 

military for failing to provide even basic equipment, and several DRDO projects have been 

behind schedule. The 1984 merger of the Department of Defence Production and the Department 

of Defence Supplies has not yet led to reliance on domestic production of military hardware. 

Service chiefs and military officers continually suggest that the military should have greater 

input into defense policymaking and national security, and generally such a role is not viewed as 

a threat to civilian control of the military. Since 2001, the government has established the 

Defence Intelligence Agency (DIA), the Defence Acquisitions Council (DAC, which now 

controls the DRDO), and the National Security Council (NSC), which suggests that India has 

rethought its defense policymaking structure. The government has also proposed creating a Chief 

of Defence Staff. However, these changes have yet to make a major impact. Indeed, the NSC 

issued the draft nuclear doctrine but has not otherwise played an important role in defense 

policymaking and is criticized as an ad hoc organization. 

In 2004 there were approximately 1,325,000 active-duty personnel, with 1,100,000 in the army, 

55,000 in the navy (5,000 in naval aviation and 1,200 marines), and 170,000 in the air force. 

Reserve forces personnel totaled 535,000, and there were fourteen paramilitary forces (including 

the coast guard) under the control of various ministries with a total strength of 1,089,700 in 

2004. 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

Foreign Military Relations: India’s most important bilateral relationship was with the Soviet 

Union, whose breakup cost India both a consistent soft-currency supplier of arms and a guardian 

of its interests in international forums. Since the late 1990s, arms purchases from Russia have 

increased, and military relations between the countries have changed from a buyer-seller 

relationship to collaborative development of military systems and occasional joint military 

exercises. Furthermore, in 2000 India and Russia signed a Declaration of Strategic Relationship 

that addresses military and technical cooperation and “deepening service to service cooperation.” 

India has strengthened bilateral defense links with France, Israel, Poland, South Africa, and the 

United States through various combinations of military acquisitions, agreements, and joint 

exercises. India has also attempted to project its influence beyond South Asia by engaging in 

occasional joint operations with Indian Ocean nations and participating in its first summit with 

the Association of Southeast Asian Nations in November 2002. 

Furthermore, Indian peacekeeping forces have been sent to Sri Lanka from 1987 to 1990 and to 

the Maldives in 1988. Since 1950 Indian military and police contingents have participated in 

United Nations (UN) peacekeeping forces in Angola, Bosnia and Herzegovina, Cambodia, 

Democratic Republic of the Congo, Costa Rica, Cyprus, Dominican Republic, El Salvador, 

Ethiopia and Eritrea, Gaza, Guatemala, Honduras, Iraq, Korea (during the Korean War), Kuwait, 

Laos, Lebanon, Liberia, Mozambique, Namibia, Nicaragua, Rwanda, Sierra Leone, Somalia, 

Vietnam, West New Guinea (West Irian), Yemen, and Yugoslavia. India has also provided 

police personnel and monitors for UN peacekeeping operations in Angola, Bosnia and 

Herzegovina, Cambodia, Haiti, Kosovo, Mozambique, Sierra Leone, and Western Sahara. 

Foreign Military Forces: The only foreign military forces in India are with the United Nations 

Military Observer Group in India and Pakistan (UNMOGIP), which has 45 military observers

from 9 countries stationed in Jammu and Kashmir. 

External Threat: External security threats come from neighboring countries and insurgents 

using foreign border areas as havens for activities in India. Countries such as Bangladesh, 

Bhutan, and Sri Lanka present no conventional military threat to India, but their inability to 

police and control areas bordering India has provided Indian insurgents with havens. Indian 

government and military officials have publicly expressed concern about the political instability 

in Nepal posed by the Maoist insurgents. As far as external threats posed by other countries, 

popular opinion tends to regard Pakistan as the principal enemy, largely because of the Kashmir 

conflict and Pakistan’s suspected links to numerous South Asian militant groups. However, the 

defense establishment generally regards China as the chief external threat, because of perceived 

Chinese attempts to isolate India militarily and diplomatically from the rest of Asia and 

perceived Chinese efforts to prevent India from becoming a permanent member of the United 

Nations (UN) Security Council. While China-India border issues remain unresolved from the 

Indian point of view, Sino-Indian relations have improved as China has adopted a less intimate 

relationship with Pakistan. 

Defense Budget: India’s defense budget has grown tremendously since the early 1990s, and 

India accounts for more than two-thirds of South Asian military spending. India’s defense budget 

was approximately US$16.6 billion in 2003, about 2.5 percent of gross domestic product (GDP), 

and the 2004 defense budget is US$19.1 billion. By contrast, the 1994 defense budget was 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

US$7.6 billion, which was also 2.5 percent of GDP in 1994. Interestingly, as a result of 

inefficient equipment procurement processes, defense expenditures are often less than the 

defense budget (around 5 percent less). 

Major Military Units: The army has an estimated 800,000 active-duty troops and 300,000 

reserves. The army is structured as 12 corps, 4 field armies, and 3 armored divisions under 

central control and organized into 5 regional commands. The Northern regional command 

consists of three corps with eight infantry and five mountain divisions; the Western regional 

command has one armored, five infantry, and three “RAPID” divisions; the Central regional 

command has one corps with one armored, one infantry, and one RAPID division; the Eastern 

regional command has three corps with one infantry and seven mountain divisions; and the 

Southern regional command has two corps with one armored and three infantry divisions. The 

navy has an estimated 55,000 persons on active duty and an equal number of reserve troops. 

Navy units are structured into three area commands, and there are six naval bases with three 

more under construction. The air force has an estimated 170,000 active forces and 140,000 

reserves. Air force units are under five regional air commands. 

Major Military Equipment: The army’s main equipment includes an estimated 3,898 main 

battle tanks, 1,600 armored infantry fighting vehicles, 317 armored personnel carriers, 4,175 

towed artillery, 200 self-propelled artillery, 150 multiple rocket launchers, 2,424 air defense 

guns, and 100 helicopters. The navy’s arsenal is composed of 1 aircraft carrier, 18 submarines, 8 

destroyers, 16 frigates, 26 corvettes, 7 amphibious ships, 88 fixed-wing aircraft, and more than 

100 helicopters. The air force’s principal equipment consists of 679 combat aircraft of various 

types and 40 armed helicopters. India and its perennial rival, Pakistan, have developed nuclear 

weapons, ostensibly to deter foreign hostility, yet periodic fighting in Kashmir—such as the 

1999 Kargil War—suggests that the theoretical logic of deterrence has not yet taken hold. 

For decades, the military has aspired to domestic production of most items, but it relies heavily 

on imports of both simple items, such as clothing, and complex weapons systems. Observers 

contend that India has not done well with the production of tanks, helicopters, and submarines, 

but has fared better with missiles, small arms, and naval craft. Moreover, India’s substantial 

spending on defense has stirred some debate about how much the defense industry should be 

privatized in order to avoid a collapse similar to that suffered by the Soviet Union. However, it is 

believed that the Ministry of Defence’s civilian bureaucracy opposes privatization in order to 

protect employment in an overstaffed state bureaucracy. There has been some consideration of 

exporting arms to make up for budget shortfalls, but exports—and concrete efforts to increase 

them—remain minimal. 

Military Service: The minimum age of service is 16, and the mandatory age for retirement for 

officers varies from 48 to 60 depending on rank. The military has expressed concern about its 

increasing age profile and a shortage of officers. Formal military service is completely on a 

volunteer basis, and India does not have—and never has had—conscription. However, a 2004 

public opinion poll suggests that the Indian public is in favor of conscription. 

Paramilitary Forces: Police are under the control of state governments, and the central 

government can assist states by providing central paramilitary forces as deemed necessary, 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

particularly to guard coasts, borders, and sensitive military areas and to aid local police forces 

against insurgencies. There is also a great deal of interest in improving paramilitary training, 

hardware, and domestic intelligence, as paramilitary forces are often outdone by insurgents in 

both combat and the use of sophisticated hardware and weapons. There are 1,089,700 active 

paramilitary personnel (including police) and 1,027,000 voluntary reserves. The Ministry of 

Home Affairs controls the Central Reserve Police Force (CRPF; 167,400 active); Assam Rifles 

(52,500); Border Security Force (BSF; 174,000); Indo-Tibetan Border Police (ITBP; 32,400); 

and National Security Guard, which is composed of elements of the armed forces, CRPF, and 

BSF (NSG; 7,400). Other paramilitary forces include the Central Industrial Security Force 

(95,000), Special Protection Group (3,000), Special Frontier Force (9,000), Defence Security 

Corps (31,000), Railway Protection Forces (70,000), and Coast Guard (more than 8,000 with 34 

patrol craft). Voluntary forces include the Home Guard (574,000) and Civil Defence (453,000). 

Voluntary forces typically have little military training and are used for civil disturbances and 

relief work. 

Police: As of October 2002, there were 1,015,416 police officers in India for a national average 

of 1 police officer per 125 persons. Police are under the control of state governments, and, with 

central government permission, states are allowed to create police reserve battalions; all 13 

reserve police battalions are in insurgent-prone northeastern states. State police are often assisted 

by—and some say depend upon—paramilitaries and the armed forces for the maintenance of 

internal security. An August 2000 government report on police reforms suggested that the Indian 

police should improve their relations with civilians, place a higher priority on crime prevention, 

and obtain improved infrastructure. The previous review of the nation’s police was conducted in 

the late 1970s, and its recommendations are as yet unimplemented. 

Internal Threats and Terrorism: India’s top security concerns are mostly internal. Indeed, 

much of the national security apparatus is directed to maintaining territorial integrity as dozens 

of groups push for varying degrees of political or social autonomy, sometimes violently. India 

treats separatism with extreme concern given the possibility that successful separatism may 

establish a precedent that other groups might seek to follow. Internal threats can be categorized 

as religiously oriented conflict or ethnic violence, usually with separatist objectives. The 10-year 

Khalistani separatist conflict in Punjab terminated in 1994, but separatist violence periodically 

escalates in Indian-controlled Jammu and Kashmir. Numerous separatist insurgent groups are 

active in the northeast, and India has periodically expanded its military efforts in Assam against 

groups such as the United Liberation Front of Assam (ULFA), National Democratic Front of 

Bodoland (NDFB), and Bodo Security Force (BSF). Other rebel groups in Assam observe ceasefire agreements with the government. The decades-long separatist conflict in Nagaland continues 

with the National Socialist Council of Nagaland-Khapland (NSCN-K), although peace talks have 

occurred with another faction, the NSCN-IM (Isaac Muivah), after the government lifted its 

previous ban on the organization. In Tripura, various insurgents continue to target Bengali 

immigrants and Indian security forces. 

Religiously oriented violence has occurred, principally among Hindus and Muslims and most 

notably in Ayodyha (in Uttar Pradesh) and urban areas of Gujarat and Maharashtra. While less 

common than separatist violence, these conflicts prompt greater popular debates on Indian 

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Library of Congress – Federal Research Division Country Profile: India, December 2004 

history, society, and politics; there are allegations that national and state-level politicians with 

the Bharatiya Janata Party (BJP) have facilitated such conflicts. 

Human Rights: Although human rights problems exist in India, the country is generally not 

regarded as among the world’s serious human rights violators. Human rights problems appear to 

be acute in areas and periods of communal violence, and security forces, insurgents, and various 

ethnic-based groups have all been accused of human rights violations in Jammu and Kashmir, 

Gujarat, Maharashtra, Uttar Pradesh, and various northeastern states. Furthermore, Hindu 

organizations have been accused of attacking religious minorities—particularly Muslims and 

Christians—and of receiving deferential treatment and even outright support from some political 

parties. Both international human rights organizations and India’s National Human Rights 

Commission have questioned the impartiality of police and judicial authorities in various locales. 

On the other hand, human rights groups have praised India’s September 2004 repeal of the 2002 

Prevention of Terrorism Act, which both the newly elected government and international 

organizations criticized as enabling human rights abuses by security forces. Indian media 

routinely address controversial issues, such as political corruption and discrimination against 

women, sexual minorities, indigenous peoples, and “untouchables.” However, the government 

has been accused of harassing and jailing journalists who investigate topics such as corruption 

and the situation in Kashmir. Moreover, in response to cyber-crime and cyber-terrorism 

perpetrated by parties in both India and Pakistan, India passed the Information Technology Act 

of 2000, which allows cybercafés and Internet users’ homes to be searched without warrants at 

any time as part of criminal investigations. 

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