(i) In the decade of the 1970s, there came about some stability in India’s Foreign Policy.
(ii) India had risen as a powerful regional power in South Asia.
(iii) By conducting nuclear tests in 1974, India had also proved its nuclear capability.
(iv) From 1980, however, some changes began to take place. In order to increase cooperation among South Asian countries, South Asian Association for Regional Cooperation (SAARC) was established.
(v) India initiated a dialogue to improve relations with China. India also started interaction with America for cooperation in the field of security.
