As part of the golden jubilee commemoration of the war, the exhibition, 'Shauryanjali', will give the public a chance to view captured Pakistani Patton and Sherman tanks as well as the milestone reading "Lahore 13 km" that was brought back by the Indian Army, showcasing how deep the troops had entered into Pakistan.
Asserting that India won the war "hands down", Parrikar said that a nation which remembers its history and martyrs, is a nation which develops and is secure.
A "nostalgic" Union Finance Minister Arun Jaitley recalled that as a school child he had witnessed the war.
"I remember as a young school boy, when our armed forces were defending our borders, the whole country used to be tuned into the radio, supporting the armed forces emotionally and materially," he said on the opening ceremony of the exhibition at Rajpath.
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Terming the occasion as "very nostalgic", Jaitley said a huge sacrifice was made and "the enemy was shown its place".
Spread over 700 metres at Rajpath, 28 exhibition halls recreate the role of Army, Navy, Air Force, CRPF, Media, Prasar Bharti, International Red Cross and others.
Jaitley released a commemorative coin while Telecom Minister Ravi Shankar Prasad released three commemorative stamps.
Prasad said that the soldiers had brought back the prestige of the country in 1965 after the loss in the 1962 war.
India had captured 1,920 kms of Pakistani land while Pakistan had taken control over 540 km of Indian territory.
In total, 2,862 soldiers gave up their life protecting the motherland and 211 of them were given gallantry awards.
"I feel that the 1965 war was the first major war that India won. Some people raise the question whether India won or was there a stalemate. Even as a 9-year-old kid, I was of the firm opinion that India won hands down," Parrikar said.
Company Quartermaster Havildar Abdul Hamid, a soldier in the 4th Battalion, The Grenadiers of the Indian Army, died in the Khem Karan sector during the Indo-Pakistani War of 1965 in the Battle of Asal Uttar. He was the posthumous recipient of India's highest military decoration, the Param Vir Chakra.