Immediately after independence, we did not anticipate any armed conflict with our neighbours. There was no doubt tension between us and Pakistan, following the latter's attack on Kashmir. But consistent with our policy of avoiding involvement in the cold war between the two power blocs, we hoped for a peaceful settle­ment of the problems between the two countries. Our differences with Pakistan had to be viewed in the wider perspective of the newly opened possibilities of economic and political cooperation between the nations of Asia and Africa. Therefore, while we did not underestimate the importance of strengthening our defence potential, the over-riding priority before us was socio-economic development. This basic assumption of our political strategy had to be substantially modified by the policies adopted by China. It became clear, as the fifties drew to a close, that the Chinese attached the highest importance to their object of becoming a super power in Asia, and were even prepared to go to war to achieve this aim. As India posed a political challenge on account of her institutions of an open society, China's policy in Asia increasingly centred around the objective of weakening India politically and economically. I need not go into the 1962 episode except to point out that it forced on us a revision of our assump­tions about the nature of the Chinese challenge. From then on­wards, the different facets of the Chinese policy, including her friendship with Pakistan. have had a single aim in view, namely the reduction of India's potential as an economically strong nation. Fortunately the over-all ?economic strategy of building a self-reliant economy helped us in strengthening our defence potential. Nonetheless a substantial stepping-up of defence effort, including the acquisition of modern armaments, became inevitable, reduc­ing, to a great extent, the resources available for economic develop­ment. Investment in defence was worthwhile, as was shown in the performance of our forces during the 1965 conflict with Pakistan.

The debit side of the first two decades has also to be analysed. The fruits of economic development have, by and large, been gathered by a very small section of the people; economic inequalities have sharpened, leading to serious tensions at many points in our social fabric. The socially and economically depres­sed sections of our population, particularly the Scheduled Castes, are yet to receive the new deal that freedom promised them. Their efforts at asserting their dignity as human beings are even now met with the arrogant claims of superior status of the so-called higher caste; and these claims are often backed by brutal violence. The economic exploitation of the tribals has produced an explosive situation in many areas. The landless labour and the small farmer have not yet participated in the prosperity that improved agriculture has brought to a small section of the rural population. A large number of educated young men, even those with high technical education, are unemployed. The cities lack adequate housing, and the pressure on civic amenities is growing all the time. In many ways, these are the problems of a growing economy, but the acuteness with which the hardships are felt by the vast masses of our people leaves no room for a simple con­solation of this kind.