March – India put up a great show at the ICC Cricket World Cup in South Africa after poor performances in the past and go on to the Finals. They were defeated by Australia in the Finals.
18 April – Prime Minister Atal Bihari Vajpayee, at his first rally in Srinagar, makes a historic announcement of a peace initiative with Pakistan.
24 September – United States President George W. Bush invites Vajpayee to lunch in New York City during Vajpayee's US trip. It is considered an important meeting for Indo-US relations. Several deals are struck on civilian nuclear technology, space, hi-tech trade and missile defence.
6 October – Vajpayee visits Bali for the second time in 2 years.
22 October – India announces confidence-building measures with respect to Indo-Pakistani relations: more buses, flights, higher mission strength, etc.