Disputes - international:
since China and India launched a security and foreign policy dialogue in 2005, consolidated discussions related to the dispute over most of their rugged, militarized boundary, regional nuclear proliferation, Indian claims that China transferred missiles to Pakistan, and other matters continue; various talks and confidence-building measures have cautiously begun to defuse tensions over Kashmir, particularly since the October 2005 earthquake in the region; Kashmir nevertheless remains the site of the world's largest and most militarized territorial dispute with portions under the de facto administration of China (Aksai Chin), India (Jammu and Kashmir), and Pakistan (Azad Kashmir and Northern Areas); in 2004, India and Pakistan instituted a cease fire in Kashmir and in 2005, restored bus service across the highly militarized Line of Control; Pakistan has taken its dispute on the impact and benefits of India's building the Baglihar Dam on the Chenab River in Jammu and Kashmir to the World Bank for arbitration; UN Military Observer Group in India and Pakistan (UNMOGIP) has maintained a small group of peacekeepers since 1949; India does not recognize Pakistan's ceding historic Kashmir lands to China in 1964; disputes persist with Pakistan over Indus River water sharing; to defuse tensions and prepare for discussions on a maritime boundary, in 2004, India and Pakistan resurveyed a portion of the disputed boundary in Sir Creek estuary at the mouth of the Rann of Kutch; Pakistani maps continue to show its Junagadh claim in Indian Gujarat State; discussions with Bangladesh remain stalled to delimit a small section of river boundary, to exchange 162 miniscule enclaves in both countries, to allocate divided villages, and to stop illegal cross-border trade, migration, violence, and transit of terrorists through the porous border; Bangladesh protests India's attempts to fence off high-traffic sections of the border; dispute with Bangladesh over New Moore/South Talpatty/Purbasha Island in the Bay of Bengal deters maritime boundary delimitation; India seeks cooperation from Bhutan and Burma to keep Indian Nagaland and Assam separatists from hiding in remote areas along the borders; Joint Border Committee with Nepal continues to demarcate minor disputed boundary sections; India maintains a strict border regime to keep out Maoist insurgents and control illegal cross-border activities from Nepal
Refugees and internally displaced persons:
refugees (country of origin): 92,394 (Tibet/China) 57,274 (Sri Lanka) 9,761 (Afghanistan)
IDPs: 600,000 (resulting from 26 December 2004 tsunami); 500,000 (Jammu and Kashmir conflicts; most IDPs are Kashmiri Hindus) (2005)
Illicit drugs:
world's largest producer of licit opium for the pharmaceutical trade, but an undetermined quantity of opium is diverted to illicit international drug markets; transit point for illicit narcotics produced in neighboring countries; illicit producer of methaqualone; vulnerable to narcotics money laundering through the hawala system
