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==== Later years ==== [[File:Prime Minister Shri Atal Bihari Vajpayee speaking at a special session to commorate 200th session of Rajya Sabha in the Centre Hall of Parliament on 11 December, 2003.jpg|thumb|Prime Minister Vajpayee speaking at a special session to commemorate the 200th session of [[Rajya Sabha]] in 2003.]] In late 2002 and 2003 the government pushed through economic reforms.<ref name="ChinaDailyEconomy2004">{{cite news |url=http://www.chinadaily.com.cn/english/doc/2004-06/30/content_344346.htm |date=30 June 2004 |author=Agencies |title=India's economy grows 8.2% in 2003–2004 |work=China Daily |access-date=17 August 2018 |archive-url=https://web.archive.org/web/20090611095603/http://www.chinadaily.com.cn/english/doc/2004-06/30/content_344346.htm |archive-date=11 June 2009 |url-status=live }}</ref> The country's GDP growth exceeded 7% every year from 2003 to 2007, following three years of sub-5% growth.<ref>{{cite web |publisher=[[World Bank]] |title=GDP growth (annual %): India |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=IN |access-date=17 August 2018 |archive-url=https://web.archive.org/web/20180818052213/https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=IN |archive-date=18 August 2018 |url-status=live }}</ref> Increasing foreign investment,<ref name="ChinaDailyEconomy2004" /> modernisation of public and industrial infrastructure, the creation of jobs, a rising high-tech and IT industry and urban modernisation and expansion improved the nation's international image. Good crop harvests and strong industrial expansion also helped the economy.<ref>{{cite news |title=India's Economy Soared by 10% in Last Quarter of 2003 |url=https://www.nytimes.com/2004/04/01/business/india-s-economy-soared-by-10-in-last-quarter-of-2003.html |work=[[The New York Times]] |date=1 April 2004 |last=Rai |first=Saritha |access-date=17 August 2018 |archive-url=https://web.archive.org/web/20180818022529/https://www.nytimes.com/2004/04/01/business/india-s-economy-soared-by-10-in-last-quarter-of-2003.html |archive-date=18 August 2018 |url-status=live }}</ref> In May 2003, he announced before the parliament that he would make one last effort to achieve peace with Pakistan. The announcement ended a period of 16 months, following the 2001 attack on the Indian parliament, during which India had severed diplomatic ties with Pakistan.<ref>{{Cite news |url=https://www.nytimes.com/2003/05/02/international/asia/india-announces-steps-in-effort-to-end-its-conflict-with.html |title=India Announces Steps in Effort to End Its Conflict With Pakistan |last=Waldman |first=Amy |date=2 May 2003 |work=The New York Times |access-date=18 August 2018 |archive-date=18 August 2018 |archive-url=https://web.archive.org/web/20180818084005/https://www.nytimes.com/2003/05/02/international/asia/india-announces-steps-in-effort-to-end-its-conflict-with.html |url-status=live }}</ref> Although diplomatic relations did not pick up immediately, visits were exchanged by high-level officials and the military standoff ended. The Pakistani President and Pakistani politicians, civil and religious leaders hailed this initiative as did the leaders of the United States, Europe and much of the world. In July 2003, Prime Minister Vajpayee visited China and met with various Chinese leaders. He recognised [[Tibet]] as a part of China, which was welcomed by the Chinese leadership, and which, in the following year, recognised [[Sikkim]] as part of India. [[China–India relations]] improved greatly in the following years.<ref>{{Cite journal |last=Jain |first=B.M. |s2cid=154249140 |date=24 January 2007 |title=India–China relations: issues and emerging trends |journal=The Round Table |volume=93 |issue=374 |pages=253–269 |doi=10.1080/00358530410001679602 |issn=0035-8533}}</ref>
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