Background to Emergency
We have already studied the changes that were taking place in Indian politics since 1967. Indira Gandhi had emerged as a towering leader with tremendous popularity. This was also the period when party competition became bitter and polarised. This period also witnessed tensions in the relationship between the government and the judiciary. The Supreme Court found many initiatives of the government to be violative of the Constitution. The Congress party took the position that this stand of the Court was against principles of democracy and parliamentary supremacy. The Congress also alleged that the Court was a conservative institution and it was becoming an obstacle in the way of implementing pro-poor welfare programmes. The parties opposed to the Congress felt that politics was becoming too personalised and that governmental authority was being converted into personal authority. The split in the Congress had sharpened the divisions between Indira Gandhi and her opponents.
Economic Context
In the elections of 1971, Congress had given the slogan of garibi hatao (remove poverty). However, the social and economic condition in the country did not improve much after 1971-72. The Bangladesh crisis had put a heavy strain on India’s economy. About eight million people crossed over the East Pakistan border into India. This was followed by war with Pakistan. After the war the U.S government stopped all aid to India. In the international market, oil prices increased manifold during this period. This led to an all-round increase in prices of commodities. Prices increased by 23 per cent in 1973 and 30 per cent in 1974. Such a high level of inflation caused much hardship to the people.
Industrial growth was low and unemployment was very high, particularly in the rural areas. In order to reduce expenditure the government froze the salaries of its employees. This caused further dissatisfaction among government employees. Monsoons failed in 1972-1973. This resulted in a sharp decline in agricultural productivity. Food grain output declined by 8 per cent. There was a general atmosphere of dissatisfaction with the prevailing economic
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