Worst bloodshed in northeast for years killed at least 73 in Assam and Nagaland 2-4 October. Separatist groups National Democratic Front of Bodoland (NDFB) and United Liberation Front of Assam (ULFA) blamed for spate of 18 explosions and gun attacks. Central government offered to join 3-way talks with Assam government and NDFB to end violence. National Socialist Council of Nagaland (NSCN) separatist leaders agreed to go to Delhi for next round of peace talks with federal government. Talks in Hyderabad between Maoist People's War Group (PWG) and Andhra Pradesh government ended 18 October with no progress. 31 October clashes between Muslims and police in Hyderabad killed 1, led to further violent protests. PWG and Maoist Communist Centre merged 8 October to create Communist Party of India (Maoist). Border troops exchanged fire with Bangladeshi counterparts 26 October after attempt to force Bangla- speakers into Bangladesh.

Protests continued in north eastern Manipur state against Armed Forces Special Powers Act; 16- day blockade launched 20 September. Congress party government in Andhra Pradesh offered to hold unconditional talks 2 October with leftist People’s War Group. President Abdul Kalam repealed controversial Prevention of Terrorism Act 22 September (which gave security forces powers to arrest, interrogate and detain suspects for 30 days without court appearance). India increased diplomatic pressure on Bangladesh to shut down anti-Indian militant camps. First meeting between PM Manmohan Singh and Pakistani President Pervez Musharraf took place 24 September.

Violence erupted in northeast. Twenty-two killed in Assam explosion as India celebrated independence day 15 August. Attack claimed by United Liberation Front of Asom (ULFA) – sparked violent protests. Several smaller blasts followed throughout region killing at least 6. ULFA among 10 separatist groups that called boycott of independence day celebrations. National Socialist Council of Nagaland (NSCN) and government resumed negotiations in New Delhi. In eastern Bihar state police killed 3 during protests against unfair distribution of relief for flood victims 17 August. Same day ongoing violent protests in Manipur against Armed Forces Special Powers Act – which gives troops right to arrest and shoot at suspected rebels – left 2 dead. Indian and Pakistani foreign ministers due to meet in New Delhi 5 and 6 September. Pakistan called for “strategic restraint” after India’s 29 August successful test-fire of long-range nuclear capable (Agni II) missile.

Foreign Minister Natwar Singh met Pakistani President Pervez Musharraf in first bilateral talks with India’s new government 23 July. Elsewhere, talks began between several northeast separatist groups and New Delhi, but 2 main groups, United Liberation Front of Asom and National Democratic Front of Bodoland, not participating. National Socialist Council of Nagaland leaders met government negotiators in Thailand 29 July extending lapsed ceasefire for another year. In positive move, government in southern Andhra Pradesh state lifted 12-year ban on Maoist People’s War Group. Opposition National Democratic Alliance continued anti-corruption campaign against government, focusing on 6 “tainted” ministers.

New government of PM Manmohan Singh sworn in 2 June with opposition claiming number of ministers “tainted”. Indian and Pakistani foreign secretaries met 27-28 June to discuss nuclear confidence-building measures and Kashmir as part of ongoing peace process. Landmine attack in eastern Jharkhand state 23 June killed 6 - blamed on leftist separatist People’s War Group (PWG). Attack followed 8 June offer of talks by Andhra Pradesh state government. PWG demanded more concessions before negotiating. Northeastern separatist groups continued campaigns: United Liberation Front of Asom attacked cinema hall with grenades 9 June, wounding 16; National Liberation Front of Tripura reportedly kidnapped 24 traders 14 June.

Surprise victory by Sonia Gandhi’s Indian National Congress over governing coalition led by PM Atal Bihari Vajpayee's Bharatiya Janata Party (BJP). Transfer of power completed without major incidents. Gandhi declined PM post, handing to former finance minister Manmohan Singh. Gandhi elected leader of ruling United Progressive Alliance (UPA) of 11 parties; has support from another 10. Singh, India's first non-Hindu PM (Sikh), sworn in 22 May. Coalition’s "Common Minimum Programme" agenda, designed to balance growth with rural development, received mixed reception. Initial row over portfolios involving DMK party, powerful southern ally of Congress, largely resolved.

Polling for parliamentary elections began 20 April; due for completion 10 May, counting beginning 13 May. PM Vajpayee's Bharatiya Janata Party (BJP) and allies campaigned on platform of peace and prosperity. Apparent strong gains by Sonia Gandhi's opposition Congress Party. Over 30 killed in election related violence, lower than in previous elections. Maoist rebels blamed for 8 April mine blasts that killed 26 police in eastern state of Jharkhand. Rebels fighting Indian rule in northeast rejected offer by PM Vajpayee to hold talks to resolve decades-old insurgency. United Liberation Front of Asom (ULFA) accused New Delhi of plundering region's mineral resources, neglecting its economy and said only referendum on independence of tribal and ethnic groups could end hostilities.

Ethnic violence returned to northeastern state of Assam. In 2 attacks armed Kuki tribesmen killed 31 Karbi villagers 24/25 March, possibly in retaliation for 3 Kuki deaths week before. Indian police killed 4 Assam rebels and reported rebels planning attacks to disrupt national elections scheduled for 20 April to 10 May. Normalisation with Pakistan continued as India went on first cricket tour in 14 years. India test fired short range nuclear– capable missile 19 March.

Basic roadmap for peace’ announced by Pakistan and Indian governments 18 February involves series of meetings over 6 months. Landmine blast killed 8 security personnel in West Bengal; militants of Maoist Communist Centre and People's War suspected. Indefinite curfew enforced in town in central state of Madhya Pradesh 22 February after clashes between Hindus and Muslims. Government talks with National Socialist Council of Nagaland scheduled for March. National election for lower house of parliament (Lok Sabha) set for 20 April to 10 May.

Bhutanese military claimed to have wiped out all 30 anti-Indian insurgent camps in Bhutan. Chief ministers in Indian northeast called for Myanmar and Bangladesh to do same. ULFA insurgents retaliated with 3 attacks on oil pipelines in upper Assam. PM Vajpayee announced early elections for April to seek new mandate. Government’s decision to abolish 9 municipal districts in Uttar Pradesh 14 January resulted in 4 days of violent demonstrations, over 60 arrested. Karbi and Kuki ethnic clash in Assam killed 3 on 19 January.