In 2009，although India economy seemed regaining its momentum，the pace of recovery is slow and rocky. The increasing pressure of inflation and rising fiscal deficit due to its stimulus packages turn to the two biggest concerns of the policy makers now. The estimate of growth rate in 2009-2010 is 6%-6.5%. This year India held general election，and the United Progressive Alliance （UPA） led by the Indian National Congress formed the government after obtaining the majority of seats. India will continuously maintain the good relations with the United States，Russia，China，Japan and Europe. India is facing great challenge of terrorism，and affected by the Naxalite menace.