Total Score	Indicators
		Social					Economic		Political/Military
2006	70.4	8.8	2.8	6.9	7.1	8.5	5.0	4.8	6.7	5.4	4.5	5.7	4.2
2007	70.8	8.3	3.2	7.0	7.1	8.9	4.6	4.8	6.7	5.4	5.0	5.6	4.2
Point Change	+0.4	-0.5	+0.4	+0.1	0	+0.4	-0.4	0	0	0	+0.5	-0.1	0
Pct Change	+0.3%	-5%	+4%	+1%	0%	+4%	-4%	0%	0%	0%	+5%	-1%	0%

Economic Indicators
India received a fairly low score of 5.0 for the economy in the FSI 2006, which improved still further to 4.6 in the FSI 2007. Although India’s market remains closed off, with high tariffs and other forms of protectionist policies that have deterred foreign investment, the Indian economy is booming, achieving a GDP growth rate of 8.5% in 2006 and expanding its skilled labor force. Projections indicate that India has the potential of becoming the third largest economy within the next 50 years. The government credits much of India’s growth to an emphasis on education.  However, despite significant growth, a large portion of India’s population lives in poverty, resulting in a high score of 8.9 for uneven economic development in the FSI 2007, slightly worse than in the previous year. There are wide economic disparities in India. India’s rapid economic growth in recent years has exacerbated inequality, as some areas become richer while others are left behind. Policymakers are focusing on establishing guidelines for economic growth in order to prevent or at least minimize inequality.

Political/Military Indicators
Although the indicator for legitimacy of the state received the relatively low score of 4.8 in the FSI 2006 and FSI 2007, the rise of organized crime is causing concern among many Indians. Public acceptance of “Mafiosi” is becoming increasingly common. Although Indian law prohibits convicted felons from holding office, there is no law that prohibits those arrested from becoming elected officials if they have yet to be convicted. Some politicians have even been known to run their campaigns from within their cells while awaiting trial. Trials are sometimes unable to continue due to “lack of evidence” or the “misplacement” of cases.

Leadership	Military	Police	Judiciary	Civil Service
Good	Good	Weak	Moderate	Moderate

The President is elected for a five-year term by an electoral college composed of members from both the house of Parliament and the legislatures of the states. Leadership in India is plagued with corruption. Recent allegations have been made of the use of force to deter electoral participation of opponents. This is becoming more common with the rise in criminalization of members of the ruling elite. However, despite corruption, India is an effective democracy with voters having the ability to select their Parliamentary representatives.

The military is well-organized with sufficient funding and equipment, although it faces accusations of human rights violations, mainly along the Pakistani—Indian border in the Kashmir region. Corruption in the military is rare, and is more commonly associated with the government and weapons contractors.

The police have developed a reputation for corruption and have been accused of human rights violations. However, accountability is expected to improve with reforms.

With a large population, insufficient funding, and lack of coordination, it is difficult for the judiciary to administer justice quickly enough. The justice system has a backlog of an estimated two million cases, many of which date back several years. Corruption exists, especially among the lower courts, but it is not very common.

The civil service in India is fairly effective; however, corruption exists and has yet to be adequately addressed.

Prognosis
With its large population and focus on developing its economy, India has the potential to become one of the world’s most powerful democracies. However, corruption is present at all levels of government and poses an obstacle to development. Some important progress has been made in the past year toward ensuring justice for all with several high-profile convictions of members of the elite, who in the past often avoided conviction for serious crimes such as murder. But more still needs to be done to make minorities, the poor and members of the lower castes feel that the government has their interest in mind. India also has a pressing need to address poverty and inequality, which could further threaten the stability of the country and exacerbate existing grievances.