Resolution of the National Executive on the Economic Situation adopted at its meeting on November 1, 1965.

Summary

This five-page Swatantra Party resolution packet records the National Executive’s economic and foreign-policy positions amid the 1965 India–Pakistan hostilities. The economic resolution argues that war-related defence needs have intensified an already serious crisis produced by inflation, distorted planning priorities, neglect of agriculture, excessive taxation, controls, over-regulation, corruption, waste, and dependence on foreign aid. It calls for agriculture to receive priority in planning and allocations; an end to compulsory procurement and zonal restrictions; a nationwide foodgrain market; remunerative price supports; temporary subsidies for poorer sections; repeal of the Seventeenth Amendment and the Gold Control Act; reduced civil expenditure and taxation; dismantling of the Permit-Licence Raj; and conditions favourable to foreign equity investment.

The subsequent foreign-policy resolution praises the armed forces and public unity, criticises Pakistan’s non-cooperation over the ceasefire, and calls for a more realistic foreign policy in response to Communist China. It supports India’s continued membership of the Commonwealth, diplomatic relations with Taiwan, liberation of Tibet, recognition of the Dalai Lama’s government in exile, and stronger support for Malaysia and South Vietnam. The packet also calls for a review of detention cases, opposes exploiting the crisis for partisan advantage, rejects the manufacture of nuclear weapons in India, and directs opposition to a proposed bill seen as weakening states’ rights and the federal structure.

Key points

• The Swatantra Party attributes India’s economic difficulties to inflation, faulty planning priorities, agricultural neglect, taxation, controls, over-regulation, corruption, waste, and foreign-aid dependence.
• The resolution makes agricultural recovery central to reducing dependence on imported foodgrains.
• It proposes freer agricultural markets, an independent agricultural prices commission, remunerative procurement, and temporary food subsidies.
• It advocates repeal of the Seventeenth Amendment and Gold Control Act, reduced taxation and civil expenditure, and dismantling of the Permit-Licence Raj.
• The foreign-policy resolution links national security to a more realistic stance toward Communist China and support for Asian democracies.
• The packet combines defence support with calls for detention review, opposition to nuclear-weapons manufacture, and protection of states’ rights and the federal structure.