Answer: It was in the backdrop of newly gained independence and the chaotic world order owing to the Cold War that set the context for India’s foreign policy after independence. India opted for Panchsheel and NAM as principles underlying its foreign policy as it had to assert its sovereignty and not become a satellite of any other nation.

• The five principles of Panchsheel included Mutual respect for each other’s territorial integrity and sovereignty, Mutual non-aggression, Mutual non-interference, Equality and mutual benefit, and Peaceful co-existence.
• The Non-Alignment Movement (NAM) was based on the concept that countries of the developing world should abstain from allying with either of the two superpowers (the United States and the U.S.S.R.) and should instead join together in support of national self- determination against all forms of colonialism and imperialism.

The principles of Panchsheel and NAM as foundational pillars of India’s foreign policy aided India in maneuvering the Cold War era in following ways:

• India, being one of the founder members of NAM during the Cold War era, refused to favour any super power and remained non-aligned, actively refusing to align itself with either party in a dispute between two power blocs. It maintained close relationships with both the US and USSR for fulfilling the developmental efforts required after independence.
• Considering the polarisation of the developed world into two nuclear blocs headed by the USA and USSR, the third world countries were coerced into this superpower competition. India’s foreign policy gave a voice to the newly established countries that had gained independence, or sought to gain independence, from colonial rulers and provided an alternative ideology dedicated to peace and development.
• Panchsheel became the presiding principle of the Asian-African movement for equality and freedom against colonialism and imperialism and amalgamated into an important defining principle of not only the Non-Aligned movement, but of the United Nations as well, which adopted these principles in 1957.
• The Non-aligned Movement repeatedly called for greater representation of third world countries in UNSC, cessation of arms race, ending discriminatory practices of apartheid, provided platform for cultural diversity and human rights. An idea of New International Economic Order (NIEO) was also perceived by NAM, which was reflected in the trade reforms proposed by UNCTAD.

However, despite adopting Panchsheel principles, India had to face war with China in 1962. Also, NAM was accused of not taking firm actions to address global issues and instead maintaining a passive or indecisive approach. It was also said that NAM lost its relevance after the disintegration of the USSR. But, both the policies are still significant in the 21st century, especially when a new form of cold war is beginning to unfold between the USA and China and a neo-colonial tendency is reflected in the actions of China in its dealings with Asian and African nations.