For the last year or so, most of the news coming out of India that has not dealt with outsourcing has focused on the growing threat of Hindu nationalism to secular Indian democracy. While political dynasties can also be threats to democracy, I think that the victory of Congress over BJP (the Hindu nationalist party) and the election of Sonia, an Italian-born woman, will be a good thing in the long run.
One must wonder why the United States and India are not closer allies. From its position between Pakistan and China to our shared values of secular democracy, it seems like it would be a good fit.
UPDATE: The hyperlink to the original Reuters article referenced in this post (entitled "India's Congress Chooses Gandhi for Prime Minister") was now shows an article entitled "India's Gandhi Walks Away from PM Job." Go figure. This New York Times article, about Ms. Gandhi's wish not to become Prime Minister has some hopeful news:
News reports said she would support Dr. Manmohan Singh, a former finance minister, as prime minister. A Sikh, he would be India's first minority prime minister.