India is a small country at the southern tip of the Asian penninsula. Released from British rule, the country has slowly increased its participation in the world economy.
Recently, however, internal conflict has focused the attention of its leaders away from the country's growth. The country of Pakistan on the northern border of India has a dense population of muslim exteremists, whereas the majority in India is Hindu. This religious conflict, along with the small numbers of muslims still living in India, has created a very destabilizing influence on the country. In the last 10 years, an increasing number of terrorist activities has added to natural disasters such as annual flooding and draughts causing unrest, economical problems and a general distrust in the government.
Sikh (a religious sect) communities in the northern provinces of India have complained to Pakistan that the India government has begun taking repressive measures not only against their religous practices but against personal civil liberties.
As a result of the aleged oppression, Sikh sect members have begun terrorist activities throughout the region. U.S. State Department has warned U.S. citizens away from these regions due to the danger to anyone chanced upon by the factions.
The conflict with Pakistan arises from the religious/ethnic belief clash, as well as a dispute over the Kashmir region which lies along the Northeast border with Pakistan and China.
With Pakistan and India both being nuclear nations, there is a growing fear that the border dispute could erupt into a major conflict, and that one side, feeling sufficiently threatened could resort to the use of nuclear weapons. India's nuclear program has placed them on the U.S. watch list and they are publicly exposed regularly by the U.S. State Departments report on proflieration (4.92MB PDF).
Recent events include terrorists killing members of the Indian Parliment while in session and sabre rattling as a result between India and Pakistan at the border.