This report discusses the context of India- U.S. relations, and its bilateral issues.

The central thesis is classical Marxian views concerning the peasant masses have been adopted regarding India; two causal factors are the Hindu Caste system and parliamentary democracy. Descriptive and analytical methodology is utilized to study classical and Indian Marxian theory and its relationship to "Marxist" practice in India. Four major elements involved are: wealthy landowners, poor and landless peasants, the Indian government, and Indian communists. Nonimplemented land reforms and recent capitalist farming compounded the problem. Attacks were launched on the Congress government by three communist parties. Government coalition has included the CPI, and has implemented agrarian reforms advocated by the CPI(M), thereby postponing possible militant communist success.

This report examines the November 26, 2008 terrorist attack on Mumbai, India that left 174 people dead and hundreds more injured. The report assesses the resulting tension between India and Pakistan, due to possible links between the attackers and the Lashkar-e-Taiba terrorist group, who are believed to have past ties with Pakistan's military and intelligence services. The report also examines the implications of the attack on U.S. foreign policy.