During the fifth phase of the Leftist movement, CPI sought to widen congress-League alienation and encourage all separatist elements and work for the division of India into a number of sovereign states. In the fifth phase its strategy was to tighten the control over at least one such state and to make it a base for the liberation of the rest of India. In due courses the Muslim League rejected the idea of an alliance with the Communists. Therefore the CPI became a discredited organization in its fifth phase.

In 1942 the CPI adopted a resolution declaring India to be a multi-national state. In 1946, they put forward before the cabinet Mission Plan for division of India into 17 separate sovereign state on the model of the U.S.S.R. By 1947, the communist movement in India had lost whatever it earned in the Indian political scenario. The political position of the CPI was completely destroyed.

However according to the historians, the Communists or the Leftist concept of the Proletarian Internationalism could not be reconciled with India`s national aspirations. Moreover the basics themes of Marxist communism, "class antagonism" and "violence" were alien to the Indian tradition. Henceforth the Leftist Movement led by the Communists could not make a progressive development in India.