Protesters set buses on fire and clashed with police over India's decision to carve a new state out of the southern region of Andhra Pradesh.

Prime Minister Tony Blair, eager to bolster Europe’s business ties with India, will argue today that the West should embrace the booming nation’s emergence as an economic powerhouse, rather than fearing it as a job-stealing threat.

India is to hold state elections in September and October in its part of disputed Kashmir.

Pakistan’s president yesterday denounced terrorism after meeting British Prime Minister Tony Blair, but India today appeared to want more details before discussing an end to the crisis between the nuclear-armed neighbours.