The Indian foreign policy in the yearly years after independence was ‘neutral’ because India wanted to maintain safe distance from the two power Blocs the Western and Soviet Bloc. The two camps led by the United States and the Soviet Russia wanted to extend their influence all over the world. India followed a policy not to be influenced by these two power Blocs. Thus, the Non-Alignment Movement (NAM) was largely a product of India’s efforts to organize a collective answer to ‘Bloc’ politics of the great powers and also to develop friendly relations among the countries who were trying to free themselves from colonial dominations. Another aim was to promote peace in the world. 

It was important for the countries of Africa and Asia to receive the support of the power blossom well to grow economically. A peaceful friendly environment could only facilitate this outcome. The 1950s were the Cold war era. The NATO had already been set up and military alliances were forming in Asia. In this situation India proclaimed a policy of Panchsheel.