India considers regional stability a prerequisite for maintaining its continued economic growth. New Delhi views economic growth coupled with a strong military as essential for gaining recognition as a global power. Domestic political issues such as unemployment, inflation, and several high-level corruption scandals continue to dominate New Delhi's attention. Senior Indian leaders also remain concerned about the country's Maoist-inspired insurgency, terrorism, and the security situation in Kashmir, although the latter saw a marked decline in violence compared to 2010. While India continues to carefully monitor events in Pakistan, China is also viewed as a long-term challenge.
In 2011, India continued efforts to increase economic and military engagement with countries in East and Southeast Asia. India and Japan agreed to conduct a bilateral naval exercise, their first since 2008; India and Vietnam pledged to increase naval training; and the India-South Korea relationship continues to progress following the Indian Defense Minister's late 2010 visit.
Beijing and New Delhi resumed military-to-military engagement in mid-2011, held their first strategic economic dialogue in September, and discussed their longstanding border dispute in November. The military situation along the contested border is quiet. However, India is concerned over Chinese logistical improvements and is taking steps to improve its own capabilities. India is raising additional ground forces, is improving logistical capacity, and has based advanced fighter aircraft opposite China.
India conducts periodic tests of its nuclear-capable missiles to enhance and verify its ballistic missile reliability and capabilities. India's current delivery systems include nuclear-capable fighter aircraft and ballistic missiles, and India claims it is developing a nuclear-capable 6,000 kilometer (km)-range intercontinental ballistic missile (ICBM) that will carry multiple warheads. India intends to test this ICBM in 2012.
