India came into being after a long struggle against one of the most powerful colonial power of the contemporary world in 1947. The first Prime Minister of India Jawaharlal Nehru had two options in the immediate aftermath of independence: first, to enter into an alliance with either of the two existing blocks namely Capitalist block led by the United States and the Communist block led by the USSR; second, to maintain neutrality. Mr. Nehru opted for neutrality. The then contemporary international scenario had presented an extremely complex situation in the wake of cold war that was in its initial phase. Nehru’s embrace of neutrality led to the emergence of Non Aligned Movement (NAM). Although this decision have been under consistent attack and has been criticized on various counts about its failures towards not serving the purpose at several fronts. The Chinese attack of 1962 was an ample proof of the adverse impact of that policy, when India was face to face with the situation akin to the theory of Prison Dilemma in international politics; i.e. either to seek the support of USA or should it align with USSR.