a. Economic crisis: The Congress’ anti poverty strategy did not improve much of the country’s socio-economic condition. The war with Pakistan further strained India’s economy as the country witnessed mass exodus of people from the East Pakistan. With the US stopping its economic aid to India, the country was economically burdened. The global oil crisis further impacted its economy with the rise in prices of basic essential commodities. There was unemployment, and sluggish industrial growth had created a general environment of discontentment among the people.
b. Student’s unrest in Gujarat and Bihar: In January 1974, students in Gujarat started an agitation against rising prices of food grains, cooking oil and other essential commodities and also against corruption in high places, which was later joined by opposition parties who demanded fresh mandate in the states. This proved to be fatal for the Congress, particularly in Gujarat where the Congress was defeated.
c. JP movement: The JP movement, which initially had students within its fold, now had a national appeal and character. The movement called for total revolution in the social, economic and political spheres in order to establish true democracy and also demanded dismissal of the Congress government in Bihar. The movement was now supported by non-Congress parties like the Jana Sangh, the Bhartiya Lok Dal that projected themselves as political alternative and targeted Mrs. Gandhi.
d. Railway strike: In 1974, the employees of Indian railways went on a strike, paralysing the nation and its economy. The strike, led by George Fernandes, demanded extra bonus, improvement in the employees’ service conditions and raised the issue of workers’ rights.
e. Conflict with the Judiciary: The conflict with the judiciary took an ugly turn over the issue of fundamental rights and directive principles and basic structure of the Constitution. In response to that, the Supreme Court passed a controversial verdict in the famous Keshwananda Bharti case according to which the Parliament cannot amend the basic structure of the constitution. The conflict of interests also arose over the appointment of A. N. Ray as the chief Justice of India, which became highly politically controversial.
f. Allahabad High Court Verdict: The Allahabad High Court passed a judgment declaring Indira Gandhi’s election to the Lok Sabha invalid. This order came on an election petition filed by Raj Narain, a socialist leader and a candidate who had contested against her in 1971 and had argued that Mrs. Gandhi had used government services in her election Campaign. The verdict had strong implications as it meant that Mrs. Gandhi was no longer MP and could not remain the PM.
g. Mass demonstrations: In the wake of the above developments, a massive protest was organised at the Delhi Ramlila ground, led by J.P. Narayan who launched a nationwide Satyagraha and demanded Mrs. Gandhi’s resignation. The political mood was certainly not in favour of the Congress.
h. In response to the above crisis, Mrs. Gandhi imposed Emergency in 1975.