NEW DELHI, July 26— “There's no place to go but up,” said one pro‐American Indian the other day, referring to the depths into which relations between India and the United States have recently plunged.

The newspaper disclosure last month that American arms shipments to Pakistan were continuing despite a previously announced embargo stung Indians as a personal betray al. The disclosure came just as the Indian Foreign Minister, Swaran Singh, re turned home from a Washing ton visit during which, he said, he had been assured by the State Department that no new arms would be sent to the Pakistani military regime.

Since then, scarcely a day has passed when the United States has not been vilified in Parliament and the press. The Government of Prime Minister Indira Gandhi—though rejecting Opposition party demands for refusal of United States aid, confiscation of American assets in India and recall of the Indian Ambassador in Washington— has repeatedly denounced the Nixon Administration in Parliament.

The Government charged again Monday that the supply of military assistance to the Pakistanis after March 25—the day Pakistan began her military offensive against the Bengali secession movement in East Pakistan—“amounts to condo nation of genocide in Bangla Desh and encouragement to the continuation of atrocities by the military rulers of Pakistan.”

“Bangla Desh,” meaning “Bengal Nation,” is the name adopted by the East Pakistani autonomy movement.

The continuance of shipments of military goods “also amounts,” Foreign Minister Singh said, “to intervention on the side of the military rulers.”

Further, Indian officials have drawn a pointed contrast between the United States' policy and that of the Soviet Union. Moscow has stated that no Soviet arms have gone to Pakistan since April of last year.

Henry A. Kissinger's secret flight from Pakistan to Peking after a two‐day visit in India has only exacerbated Indian American relations. Indian officials and private citizens feel that Mr. Kissinger's short stop over in New Delhi—described as a fact‐finding visit—was merely a “cover” and a “stage prop” for his visit to Peking.

This view was buttressed by the White House acknowledgment that the timing of the Peking visit influenced the scheduling of the rest of the Kissinger trip—which included stops in South Vietnam, Thailand, India, Pakistan and France.

Moreover, since Pakistan maintained secrecy on Mr. Kissinger's movements, facilitated his flight to Peking and might have been instrumental in arranging his meeting with Premier Chou En‐lai, Indian public opinion believes this may explain the continuance of United States military aid to Pakistan and the refusal of the Nixon Administration to issue a public denunciation of the military repression in East Pakistan.

Peking Arms Aid Reported

Indian officials are also now drawing attention to the similarity of American and Chinese policy regarding the East Pakistani crisis. Peking has supported the Islamabad regime and is reportedly supplying sizable arms aid.

Washington's current tattered relations with New Delhi are a very tender subject at the United States Embassy here. Embassy officials are obviously unhappy, but they are not talking. Other Americans and United Nations officials, who clearly reflect the embassy, mood, are not similarly, inhibited.

“Our credibility will be zilch, for some time,” said one such American. “This has set us back just as things were beginning to look up.”

“It doesn't mean our relations are damaged for all time,” said another, “but the longer the Bangla Desh thing drags on, the longer it will take us to come out from under.”

The Indian resentment over the arms shipments is intense.

The East Pakistani upheaval —which has driven seven mil lion Bengali refugees into India and raised the possibility of another Indian‐Pakistani war— has revived for Indians all the searing images of the bloody religious rioting that accompanied the partition of the sub continent in 1947 into Pakistan as a Moslem homeland and India as a secular but predominantly Hindu nation.

For the Indians, it has be come a moral question of good versus evil—a Bengali people seeking freedom and a military regime suppressing them with bullets. The Americans, in the Indian mind, have lined up with evil.

“It's Armageddon to the Indians,” said one American. “It wouldn't matter if the arms consisted of only one nut or one bolt or one armature for weapon.”

In this atmosphere, Washing ton's argument that the amount of the current arms aid is in significant and that its continuation is necessary if the United States is to be able to exert any private leverage on Pakistan for a peaceful settlement in East Pakistan has made no impression on New Delhi.

With emotionalism high in India, a national debate is raging, largely in private circles, over whether to go to war against Pakistan.

While many in the Indian intelligentsia talk constantly of teaching the Pakistanis a lesson —and some even use the argument that a war would be less costly than supporting the millions of Bengali refugees—no one at the top in the Indian Government is recommending a war, and no war preparations, are visible.

Still, with the prevailing tinder‐box tension, officials acknowledge that war remains real possibility.

Mrs. Gandhi is reported to view war as a last resort and has said her Government would not “embark on any adventurist policies.” But both she and the Pakistani President, Gen. Agha Mohammad Yahya Khan, have declared that if a war were forced on them, they were fully prepared to fight.

One highly placed official close to Mrs. Gandhi said the other day that if war came, it would be because of “a failure by us or our friends”—that is, the great powers—to find peaceful way out.

With India providing border, sanctuaries, arms aid, training and sometimes covering fire for the Bengali resistance fighters, there is a persistent danger that a minor border clash could explode into a general war.

India's apparent hope is that her military assistance will be enough to bring about an in dependent Bangla Desh, short of war with Pakistan. “We are doing everything possible,” Foreign Minister Singh said in Parliament yesterday “to support the freedom fighters.”