Premiership of Lal Bahadur Shastri

Laying claim to half the Kutch peninsula, the Pakistani army skirmished with Indian forces in August, 1965. In his report to the Lok Sabha on the confrontation in Kutch, Shastri stated:[3]

In the utilization of our limited resources, we have always given primacy to plans and projects for economic development. It would, therefore, be obvious for anyone who is prepared to look at things objectively that India can have no possible interest in provoking border incidents or in building up an atmosphere of strife... In these circumstances, the duty of Government is quite clear and this duty will be discharged fully and effectively... We would prefer to live in poverty for as long as necessary but we shall not allow our freedom to be subverted.

Shastri accepted British mediation, but received much criticism at home for agreeing to the British Prime Minister's scheme to grant Pakistan 10%, instead of the original claim of 50% of the territory. But when Pakistani forces began incursions into the Indian state of Jammu and Kashmir, Shastri ordered Indian forces to cross the international boundary to repel Pakistani forces.[1] Massive tank battles occurred in the Punjab, and while Pakistani forces made some gains, Indian forces captured the key post at Haji Pir, in Kashmir, and brought the Pakistani city of Lahore under artillery and mortar fire.

Shastri and Pakistan's Ayub Khan agreed to a cease-fire mandated by the United Nations. Shastri won great popularity for taking a firm stand against Pakistani aggression.[6] In a broadcast to the nation on the day of the ceasefire, Shastri stated:[3]

While the conflict between the armed forces of the two countries has come to an end, the more important thing for the United Nations and all those who stand for peace is to bring to an end the deeper conflict... How can this be brought about? In our view, the only answer lies in peaceful coexistence. India has stood for the principle of coexistence and championed it all over the world. Peaceful coexistence is possible among nations no matter how deep the differences between them, how far apart they are in their political and economic systems, no matter how intense the issues that divide them.

Shastri accepted mediation from the Soviet Union and signed the Tashkent Declaration on 10 January 1966 with Pakistani president Ayub Khan in the presence of Alexei Kosygin, the Premier of the Soviet Union. Both nations agreed to withdraw their forces to pre-war lines, normalise diplomatic relations and use dialogue to resolve disputes.[7]