Indira Gandhi became a strong leader with immense popularity. This was also a time of bitter and polarised party competition. This period also saw tensions between the government and judiciary. The Supreme Court found numerous government initiatives to be in violation of the Constitution. The Congress party argued that the Court’s stance violated democratic and parliamentary principles. The Congress argued that the conservative Court was hindering pro-poor welfare programs. Parties opposed to the Congress believed politics was becoming too personal and governmental authority was being replaced by personal authority. The Congress split deepened the divide between Indira Gandhi and her opponents.

Economic Context

1.Elections Of 1971 & Garibi Hatao: The Congress party in the 1971 elections used the slogan ‘garibi hatao’ which translates to “remove poverty”. This was an electoral promise to improve the economic situation of the country and uplift the living conditions of the masses.

2.Bangladesh Crisis: The Bangladesh Liberation War in 1971 led to the formation of Bangladesh as a separate country from Pakistan. The immediate aftermath of this event led to a large influx of refugees, approximately eight million, from East Pakistan into India, creating a massive humanitarian and economic crisis.

3.War With Pakistan: In addition to the Bangladesh crisis, India went to war with Pakistan, further draining the country’s resources and finances.

4.U.S Aid Stoppage: Post-war, the United States government stopped all aid to India, which had an adverse effect on the Indian economy.

5.Oil Price Surge: The 1970s was a decade of oil crises, with prices shooting up internationally. The Organisation of Arab Petroleum Exporting Countries (OAPEC) proclaimed an oil embargo in 1973 which caused oil prices to quadruple. This had a cascading effect on the prices of other commodities in India.

6.Inflation: The surging prices of commodities caused inflation rates to shoot up to 23% in 1973 and 30% in 1974. High inflation rates severely impact the common man as daily essentials become more expensive.