Disputes - international:
much of the rugged, militarized boundary with China is in dispute,
but the two sides have participated in more than 13 rounds of joint
working group sessions on this issue; India objects to Pakistan
ceding lands to China in 1965 boundary agreement that India believes
are part of disputed Kashmir; with Pakistan, armed stand-off over
the status and sovereignty of Kashmir continues; disputes with
Pakistan over Indus River water sharing and the terminus of the Rann
of Kutch, which prevents maritime boundary delimitation; Joint
Border Committee with Nepal continues to work on resolution of
disputed boundary sections; dispute with Bangladesh over New
Moore/South Talpatty Island in the Bay of Bengal prevents maritime
boundary delimitation
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