According to historian Ramachandra Guha, India wanted a “comprehensive treaty to resolve all outstanding issues,” while Pakistan preferred a “piecemeal approach.” Although India wanted a treaty, it got a deal because of the hard deals made by the Pakistanis. U.S. President Donald Trump`s recent statement on plausible mediation in the Kashmir dispute — between India and Pakistan — has once again shed light on the 1972 shimla agreement. The Simla Or Shimla Agreement was signed on July 3, 1972 in Shimla, capital of the Indian state of Himachal Pradesh, between India and Pakistan.  It was followed by the Bangladesh Liberation War in 1971, which led to the independence of Bangladesh, formerly known as East Pakistan and part of the territory of Pakistan. India entered the war as an ally of Bangladesh, turning the war into the Indo-Pakistani war of 1971.  The agreement insists on respect for each other`s sovereignty, territorial integrity, political independence and unity. It also mentions non-interference in the internal affairs of the other and the flaw in hostile propaganda. The summit between Bhutto and Indra Gandhi opened in Simla at the set time. The Summit was held from 28 June to 2 July 1972. The objective of the agreement was to define the measures envisaged to normalize bilateral relations and settle mutual disputes through peaceful means and bilateral negotiations.
India wanted to solve all the problems in one package, so it proposed a treaty of friendship obliging the two countries to renounce the use of force in the event of a dispute, not to interfere in each other`s personal internal affairs, not to seek interference by third parties in the settlement of their differences and to renounce opposing military alliances. Pakistan wanted to focus on such immediate issues as the release of prisoners of war, the withdrawal of troops and the resumption of diplomatic relations. He rejected the Indian proposal on the grounds that it would involve a lasting adoption of the Kashmir division and the withdrawal of the Kashmir dispute from the United Nations. Pakistan ratified the Simla Agreement, ratified on 15 July 1972 and India on 3 August 1972, and entered into force on 4 August 1972. The Simla Agreement ensured the withdrawal of armed forces from the territories occupied by both sides during the war, with the exception of Kashmir. Over the next two years, all prisoners of war had also returned home. The Simla Agreement, signed on 2 July 1972 by Prime Minister Indira Gandhi and Pakistani President Zulfikar Ali Bhutto, was much more than a peace treaty intended to reverse the consequences of the 1971 war (i.e. troop withdrawals and prisoner-of-war exchanges). This was a great blue pressure for good-neighbourly relations between India and Pakistan.
Under the Simla Agreement, the two countries pledged to engage in conflicts and confrontations that have affected past relations and to work towards lasting peace, friendship and cooperation. The Simla Agreement contains a number of guiding principles on which India and Pakistan have mutually agreed and which both sides would respect in managing relations between them. . . .