After the 1971 election, Indira became a popular leader with a lot of support from the people. This time there were serious problems in the Party. 

There were three main reasons:

• Economic Reasons
• Gujarat & Bihar Movement
• Dispute with the Judiciary

The main slogan in the 1971 election was ‘garibi hatao’. But when the government came to power it could not improve the economic condition of the country, There were a number of reasons for that. First of all there was the refuge problem. Then there was the Bangladesh Crisis, followed by the Indo Pakistan War. All these things created financial problems. Secondly, after the War, America stopped its aids to India.

Thirdly, there was a sharp increase in oil prices. The 4th reason was inflation which made the life of ordinary people very difficult. The 5th problem was negative growth in industrial output. Unemployment increased, especially in the rural sector. Sixthly, the salaries of government employees had to be reduced and even stopped. Seventhly, lack of rain caused serious shortfall in food stuff. All the above things created an economic crisis in the country. There was general discontentment in the country. This gave the Opposition Parties an opportunity to organise protests.

Gujarat and Bihar Movement:

The second biggest problem was the students’ protest in Gujarat and Bihar which were Congress ruled States. The main reason was the increase in the prices of essential commodities. Shortage of food, unemployment and corruption made the students angry. In both these States the Opposition Parties supported the students. In Gujarat, Presidential Rule was imposed. At this time the main opponent of Indira Gandhi and the leader of Congress (O), Morarji Desai, decided to go on an indefinite hunger strike.

He did that for demanding elections in Gujarat. In June 1975, because of heavy pressure from various sources, election was conducted. Congress lost the election. In Bihar the students invited Jay Prakash Narayan to lead their protest. He accepted the invitation insisting that the protest must be non violent.

He asked for the dismissal of the Bihar government. He argued that there was a need for a revolution in social, economic and political spheres. But the Bihar government refused to resign. The entire country discussed the issue. Jay Prakash Narayan wanted to spread the protest to all parts of the country. In the meantime the railway workers went on a strike.

It would make the entire country come to a stand still. In 1975, Jay Prakash Narayan organized a march to the Parliament. It was the biggest rally the capital had ever seen. The Opposition saw in him an alternative to Indira Gandhi. Both the protests were anti Congress. Voices also rose against the leadership of Mrs. Gandhi. She believed that all this was done to take revenge on her.

Dispute with the Judiciary:

Another reason for the declaration of Emergency was Indira Gandhi’s dispute with the Judiciary.The Supreme Court said that some of the things the government did were against the Constitution. Congress argued that the Supreme Court judgement was against democracy and the authority of the Parliament. The Party said that the Court was standing against some welfare measures taken to help the poor people. The dispute was mainly in three things.

Firstly, Can the Parliament change the Fundamental Rights The Court said no. Secondly, Can the Parliament change ownership of land? Again the Court said no. Thirdly, the Parliament said that it had the right to reduce fundamental rights. It amended the Constitution. But the Supreme Court objected. Ail these were the reasons for the dispute between the Government and the Supreme Court.

There were two more reasons. In the Kesavananda Bharati case, the Supreme Court judged that the Parliament can’t change the basic structure of the Constitution. Soon the post of the Chief Justice became vacant. Normally the senior most judge is appointed as the Chief Justice. But keeping aside 3 eligible Judges, the government appointed A.N. Roy as the Chief Justice. This appointment became controversial. Besides, the Uttar Pradesh High Court declared the election of Indira Gandhi as null and void. All these were the reasons for Mrs Gandhi to declare Emergency in June 1975.