In 2004, with fresh elections called, the BJP were expected to win re-election. The Congress party was again led by Sonia Gandhi and gained surprising support through an exhausting grassroots campaign. So successful was she that the dominant BJP were ousted for the first time in almost 10 years. Concerned for her wellbeing, and also aware of the controversy her non-Indian origin could cause, Sonia Gandhi declined the Prime Ministerial role, sending shockwaves through her party. Instead she nominated India’s first Sikh leader, an anti-corruption stalwart and economic reformist, Manmohan Singh, to lead the parliament.
The 2004 Indian Ocean tsunami killed over 15,000 people and caused large scale damage along the southeastern coast of the country. The central coast of Tamil Nadu suffered the worst of the devastation with the Andaman and Nicobar Islands, Pondicherry and Kerala states also hit hard. Basic aid and temporary housing made possible by the Indian government (and reinforced by a half-billion $US World Bank pledge) ensured a swift recovery.
In recent years Prime Minister Singh has gone to great lengths to firm up India’s diplomatic and trade relations, particularly with former sparring partners such as Pakistan, China and the US. In July 2006 the worst terrorist bombing in over a decade killed nearly 200 people on several Mumbai commuter trains. In February 2007 a similar attack killed over 60 on the Samjauta express which runs between Delhi and Lahore. Although the attacks were linked to Pakistan-based militants, India continued to pursue a positive relationship with its neighbor including the opening of a cross-border bus service. Though leftist Naxalite insurgents in the northeast and central south have grown more brazen in their attacks, the national economy continues to flourish and the world’s largest democracy is taking a larger role on the global stage.
Source from: www.lonelyplanet.com