The Republic of India, a subcontinent jutting southward from the mainland of Asia, has an area of 1,266,595 sq. mi. (3,287,590 sq. km.) and a population of 1,006.8 million, second only to the Peoples Republic of China. Capital: New Delhi. India?s economy is based on agriculture and industrial activity. Engineering goods, cotton apparel and fabrics, handicraft, tea, iron and steel are exported. ,The people of India have had a continuous civilization since about 2500 B.C., when the urban culture based on commerce and trade, was developed by the inhabitants of the Indus River Valley. The origins of this civilization are uncertain, but it declined about 1500 B.C., when the region was conquered by the Aryans. Over the following 2,000 years, the Aryans developed a Brahmanic civilization and introduced the caste system. Several successive empires flourished in India over the following centuries, notably those of the Mauryans, Guptas and Mughals. In the 7th and 8th centuries A.D., the Arabs expanded into western India, bringing with them Islamic faith. A Muslim dynasty (the Mughal Empire) controlled virtually the entire subcontinent during the period preceding the arrival of the Europeans; an Indo-Islamic style of art and architecture evolved, of which the Taj Mahal is a splendid empire.,, ,The Portuguese were the first to arrive, off Calicut in May 1498. It was not until 1612, after Portuguese and Spanish power began to wane, that the English East India Company established its initial settlement at Surat. By the end of the century, English traders were firmly established in Bombay, Madras and Calcutta, as well as in some parts if the interior and Britain was implementing a policy to create the civil and military institutions that would insure British dominion over the country. Bu 1757, following the successful conclusion of a war of colonial rivalry with France, the British were firmly established in India not only as traders, but as conquerors. During the next 60 years, the English East India Company acquired dominion over most of India by bribery and force, and ruled directly or through puppet princelings. ,The Indian Mutiny (also called Sepoy Mutiny) of 1857-59, begun by Indian troops in the service of Britain East India Company, revealed the intensity of the growing resentment against British domination. The widespread rebellion against British rule was unsuccessful, but resulted in the transfer of government from the company to the British crown. ,Following World War I, in which India sent six million troops to fight at the side of the Allies, Indian nationalism intensified under the banner of the Indian National Congress and the leadership of Mohandas Gandhi, who called the non-violent revolt against British authority. The Government of India Act of 1935 proposed a federal status linking the British India provinces with the many princely states; in addition provincial legislatures were to be created. The federal status was never implemented, but the legislatures were created after the election of 1937, with the National Congress winning majorities in most of the provinces. ,When Britain declared war on Germany in Sept. 1939, the viceroy declared India also to be at war with a common enemy. The Congress, however, demanded independence as a condition for cooperation. Britain refused. But as the Japanese advanced into Asia, Britain offered to transfer to Indian power over all but military affairs during the war, and set forth a plan for postwar independence. Congress was willing to accept the wartime transfer of power, but both Congress and the Muslim League rejected Britain?s plan for independence; Congress because it did not sufficiently safeguard Indian unity, the Muslims (who wanted a separate Muslim state) because of fears of what would happen to Muslims within a united India. ,Early in 1947, Prime Minister Clement Attlee announced that Britain would leave India ?by a date not later than June 1948,? even though the Hindus and Muslims could not agree among themselves on a plan for self-government. The National Congress, aware that the Muslim League would revolt rather than accept an all-India government, reluctantly agreed to the formation of a separate Muslim state. The Muslim-populated provinces of the northwest frontier, Sindh and West Punjab in the west, and East Bengal in the east were separated from India to form the Muslim state of Pakistan, which became independent on August 14, 1947. India became independent on 1,000 miles of Indian territory. East Pakistan seceded from Pakistan on March 26, 1971, and with the support of India established itself as the independent Peoples Republic of Bangladesh. ,The Republic of India is a member of the Commonwealth of Nations. The president is the Chief of State. The prime minister is the Head of Government. Rulers:, ,British to 1947 Monetary System:,,, ,1 Rupee = 16 Annas to 1957,, ,1 Rupee = 100 Naye Paise, 1957-1964,, ,1 Rupee = 100 Paise, 1964-,,