Economic policies
Shastri continued Nehru's socialist economic policies with central planning. He promoted the
White Revolution – a national campaign to increase the production and supply of milk – by supporting the
Amul milk co-operative of
Anand, Gujarat and creating the
National Dairy Development Board.
[2] While speaking on the chronic food shortages across the country, Shastri urged people to voluntarily give up one meal so that the saved food could be distributed to the affected populace. During the 22-day war with Pakistan in 1965, Shastri created the slogan of "
Jai Jawan Jai Kisan" ("Hail the soldier, Hail the farmer"), underlining the need to boost India's food production. Shastri also promoted the
Green Revolution. Though he was a socialist, Shastri stated that India cannot have a regimented type of economy.
[2]
Foreign policies
In 1964, Shastri signed an accord with the Sri Lankan Prime minister
Sirimavo Bandaranaike regarding the status of
Indian Tamils in the then Ceylon.
[18] This agreement is also known as the Srimavo-Shastri Pact or the Bandaranaike-Shastri pact.
[19]
Under the terms of this agreement, 600,000 Indian Tamils were to be repatriated, while 375,000 were to be granted Sri Lankan citizenship. This settlement was to be done by 31 October 1981. However, after Shastri's death, by 1981, India had taken only 300,000 Tamils as repatriates, while Sri Lanka had granted citizenship to only 185,000 citizens (plus another 62,000 born after 1964). Later, India declined to consider any further applications for citizenship, stating that the 1964 agreement had lapsed.
[18]
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.
Under a scheme proposed in June 1965 by
British Prime Minister Harold Wilson, Pakistan obtained 10%, in place of their original claim of 50% of the territory. But Pakistan's aggressive intentions were also focused on
Kashmir. When armed infiltrators from Pakistan began entering the State of Jammu and Kashmir, Shastri made it clear to Pakistan that force would be met with force. 29
[20]In September 1965, major incursions of militants and Pakistani soldiers began, hoping not only to break down the government but incite a sympathetic revolt. The revolt did not happen, and India sent its forces across the Ceasefire Line (now
Line of Control) and threatened Pakistan by crossing the International Border near
Lahore as war broke out on a general scale. Massive tank battles occurred in the
Punjab, and while the 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.
On 17 September 1965, while the Indo-Pak war was on, India received a letter from
China alleging that the Indian army had set up army equipment in Chinese territory, and India would face China's wrath, unless the equipment was pulled down. In spite of the threat of aggression from China, Shastri declared "China's allegation is untrue. If China attacks India it is our firm resolve to fight for our freedom. The might of China will not deter us from defending our territorial integrity."
[21] The Chinese did not respond, but the Indo-Pak war resulted in some
3–4,000 casualties on each side and significant loss of
material.
The Indo-Pak war ended on 23 September 1965 with a
United Nations-mandated ceasefire. In a broadcast to the nation on the day the of ceasefire, Shastri stated:
[17]
"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."
