The Geopolitical and security situation in India and its immediate neighbourhood remained stable during the months under review. Sporadic violent activities in parts of the Pakistani hinterland and continuing volatility in the Pakistan-Afghanistan border region were witnessed. The NATO strike in one of the instances where 24 Pakistani soldiers were killed has further deteriorated the relations between Pakistan and the US. Strain in this relationship is likely to have strategic impacts in the region as a whole. Indian economy showed signs of slowdown in the second successive quarter, as most of its economic indicators showed signs of weakness. The growth projection of the Indian economy is now pegged at less than 7%, which is a cause of worry for the national planners. The Indian internal security situation remained relatively stable.
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