Of course, Indira Gandhi is lauded for her efforts in separating east pakistan and west pakistan and also indicating that India is not looking for an inch of Bangladeshi territory and thereby winning its confidence. This is definitely worked in India's favour. This is what is called intelligent politics. In today's time India would be spending a lot on securing the other border as well and India would have been sandwiched between two territories of Pakistan.
In the Shimla Agreement it is learnt that both Prime Ministers were concerned about the image they would carry in their own country. Both wanted to showcase their acheivements in Shimla. Indira Gandhi did win over a part of Kashmir in the agreement. In fact in the negotiations she gave an option to Zulfikar Ali Bhutto to take the pows in exchange of a part of the land. But bhutto chose the land. His logic was that the POWs were a burden to a country so let India keep the burden while we get a part of the land taken by India during the war. If Indira Gandhi would have demanded a settlement in Kashmir then the talks would have failed which was not good for both countries.
