The much anticipated general election produced a majority for the Bharatiya Janata Party under the leadership of Narendra Modi. The new administration is setting out an agenda for governing. The economy showed some signs of improvement, business confidence is returning, but economic growth has yet to return to earlier high levels.
The Congress-led coalition battled through another difficult year with issues of governance continuing to cause difficulty for the government. The economy performed unevenly, with high rates of inflation and slower economic growth. Close relations were maintained with the U.S., but relations with China remained awkward. Pakistan and India made little headway on improving relations. Campaigning for the 2014 general election began midway through 2013.