The Pakistani forces in East Pakistan, commanded by Lt Gen AAK Niazi, surrendered to Lt Gen Jagjit S Aurora, GOC in-chief of the Eastern Command of the Indian Army at Dhaka on Dec 16, 1971, at 16.31 IST.
On the evening of December 3, 1971, Pakistani planes attacked 11 airfields in India. PM Indira Gandhi addressed the nation and stated that the air strikes were a declaration of war against India. IAF responded with initial air strikes soon after
On July 31, 1971 The Parliament passed the 26th Constitutional Amendment, abolishing the privy purses that were being given to the rulers of the erstwhile princely states. Smt Indira Gandhi said, "The concept of rulership, with privy purses and special privileges unrelated to any current functions and social purposes, is incompatible with an egalitarian social order."
The revolutionary policies pursued by Indiraji were vindicated in March 1971, when the Congress won an emphatic victory in the Lok Sabha elections. The party improved its tally from 283 seats in 1967 to 352 seats in the fifth general elections. Bupyed by the victory, the Congress rededicated itself to eradicating poverty from the country.
14 major private banks were nationalised to open the doors of the banking sector to the poor. The expansion of commercial banking had so far excluded rural areas and small-scale borrowers. The success of the decision can be gauged by the fact that by 1979, the total number of branches of these banks increased from 8,262 in 1969 to 30,202.
At the AICC meet in June 1967, Indiraji unveiled her Ten Point programme seeking social control of banking institutions; nationalisation of general insurance; nationalisation of export and import trade; public distribution of foodgrain; curbs on monopolies and concentration of economic power; limits on urban incomes and property; better implementation of land reform; and an end to princely privileges and privy purses.
On January 24. 1966 Smt Indira Gandhi took over as the Prime Minister of India. After Shastriji's death in Tashkent Shri Gulzari Lal Nanda had been functioning as the caretaker Prime Minister. He had performed a similar role after Pandit Nehru's death in 1964.
India and Pakistan signed the Tashkent Declaration on January 10, 1966 to bring an end to the Indo-Pak war. Shastriji passed away the next day due to a heart attack.