Hi Tony,
I grew up in India, so I can give you a few tips... Mostly terrorist affected areas are in Northern state of Jammu & Kashmir and very eastern states of the country. However, nowadays all the tourist places are very highly secured... Unfortunately, recently there was a bomb blast in a very peaceful city of Jaipur in Rajasthan! But, these things do not happen everyday... just being cautious and street smart will make your trip more than 90% safe and fun! I guess 10% you can leave on luck...
For example, you can take your camcoder/high-end camera everywhere; but make sure you don't leave it unattended! While taking public transportation like bus or train, take care of your belongings and don't eat anything from strangers (this is the advice my dad gave me when I was young ;-) )... When you take a cab or an Auto-Rikshaw (3-wheeler), make sure you make it clear from the beginning that you will pay according to meter only.. most of the airports/train stations have pre-paid taxi service.. this will eliminate any malpractice by the taxi operators.. (btw, even if they ask you way more than what you actually owe, it will be still cheaper than what we pay in USA!!).. If possible, don't roam around alone at nights..
Tourist places like Agra, Goa might be a little expensive.. but if you act smart, you can get good bargains! I had a friend traveling to Agra early this year - the hotel shuttle asked her for Rs. 1400 (~ 22 Euro) for a ride to Taj Mahal, she denied. They asked her for Rs. 1000; she still didn't agree and decided to get it on her own. She walked out, and found a paddle-taxi for Rs. 25 ( ~ 0.4 euro?!).. Although, many times it is advisable to get a ride from some wel-known and trustworthy source (especially at nights); if you are confident in the surrounding, you can save a lot of money!
You are spending good six months in India.. so make sure to make best of it! Avoid street food.. avoid raw food... drink mineral water (again.. bought from stores.. not street kids..).. Even decent to very good restaurants will cost hardly $1-8 for a really good meal! Really pricey ones will cost you no more than $12... ofcourse, it depends on what you do!
You might face initial cultural differences.. as India is a different place.. especially in off-the-track places... but in general, people are friendly.. they will go out of the way to help you sometimes... sometimes they might try to get more money from you ;-).. as for some of them, you look like a walking ATM 😊
Must visits (i.e. my personal favorites):
Golden Triangle of north-western India: Jaipur, Jaisalmer (camel safari), other places in the desert of Rajasthan, Agra, Delhi, Chandigarh.
South India: Kerala backwaters, hill stations in this area, Pondichery, Kanyakumari, etc.
national parks: Gir National Park (only place for asiatic lions), Jim Corbett national park, ...
Beaches of Goa...
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