India is moving ahead in improving its relations with the major and middle powers and availing ofthe opportunities being offered by strategic partnerships and economic cooperation agreements with such powers. India's relations with the United States have acquired special importance as the United States opens up to India for transfer of high technology, including that in the defence and nuclear fields, in the hope that India will be a valuable partner in maintaining international stability and countering global terrorism. However, the great debate in India pertaining to the Indo-US nuclear deal of 2005 persists with the objective of preserving India's strategic autonomy while accessing the benefits of a stronger relationship with the United States. The relationship with Russia continues to be strengthened, particularly in the field of defence cooperation. However, relations with China, despite improvement in trade, hang in the balance until the border dispute is resolved. There is still mistrust between the two countries which stands in the way of concretizing their strategic partnership. Pakistan remains a source of threat even though atmospherics have become more positive. Militancy and terrorism in J&K and other partsof India originating from Pakistan cast a dark shadow over Indo-Pak relations, with no end in sight. While such a mix of hope and despair constitutes the external security environment of India,there is nothing but despair as regards the internal security situation. These and various other aspects of India's national security, including the threats and challenges that face the country in the years ahead, have been discussed in great detail in this seventh volume of India's National Security Annual Review.
