In early 1971, disputed elections in Pakistan led then East Pakistan to declare independence as Bangladesh. Repression and violence by the Pakistani army led to 10 million refugees crossing the border into India over the following months. Finally, in December 1971, Gandhi intervened directly in the conflict to liberate Bangladesh. India emerged victorious following the war with Pakistan to become the dominant power of South Asia. India had signed a treaty with the Soviet Union promising mutual assistance in the case of war, while Pakistan received active support from the United States during the conflict.
Gandhi remained a staunch supporter of the Palestinians in the Arab–Israeli conflict and was critical of the Middle East diplomacy sponsored by the United States. Israel was viewed as a religious state, and thus an analogue to India's archrival Pakistan. Indian diplomats hoped to win Arab support in countering Pakistan in Kashmir. Nevertheless, Gandhi authorised the development of a secret channel of contact and security assistance with Israel in the late 1960s. Her lieutenant, P. V. Narasimha Rao, later became prime minister and approved full diplomatic ties with Israel in 1992.
The Commonwealth is a voluntary association of mainly former British colonies. India maintained cordial relations with most of the members during Gandhi's time in power. In the 1980s, she, along with Canadian prime minister Pierre Trudeau, Zambia's president Kenneth Kaunda, Australian prime minister Malcolm Fraser and Singapore prime minister Lee Kuan Yew was regarded as one of the pillars of the Commonwealth. India under Gandhi also hosted the 1983 Commonwealth Heads of Government summit in New Delhi. Gandhi used these meetings as a forum to put pressure on member countries to cut economic, sports, and cultural ties with Apartheid South Africa.
When Gandhi came to power in 1966, Lyndon Johnson was the US president. At the time, India was reliant on the US for food aid. Gandhi resented the US policy of food aid being used as a tool to force India to adopt policies favoured by the US. She also resolutely refused to sign the Treaty on the Non-Proliferation of Nuclear Weapons(NPT). Relations with the US were strained badly under President Richard Nixon and his favouring of Pakistan during the Bangladesh liberation war. Nixon despised Gandhi politically and personally. In 1981, Gandhi met President Ronald Reagan for the first time at the North–South Summit held to discuss global poverty. She had been described to him as an 'Ogre', but he found her charming and easy to work with and they formed a close working relationship during her premiership in the 1980s.