“A billion people, in a functioning democracy. Ain’t that something.” George W.?Bush’s awestruck musings on the wonders of Indian democracy will be echoed all around the world this week.

Despite a sharp economic slowdown and a series of destabilising terrorist attacks, India’s 420m voters have just calmly voted the Congress party back into government, with a much increased majority.

In western capitals, admiration for the maturity of Indian democracy will be mixed with relief. There were fears that a government led by the rightwing BJP would take a more confrontational line with Pakistan – widening the conflict in south Asia in new and dangerous ways. Investors also seem to be impressed. The stock market shot up 17 per cent in the wake of Congress’s victory.