Spectrum Summary: Indira Gandhi: the First Phase (January 1966–March 1977) | History for UPSC CSE PDF Download

After Lal Bahadur Shastri's sudden death in January 1966, Gulzarilal Nanda became the temporary prime minister until elections were held. In the Congress party leadership election, Indira Gandhi, Nehru's daughter, defeated Morarji Desai with the support of the Syndicate and most party members. Some believe that senior Congress members thought she was easy to influence the way they wanted. 

Early life

Indira Gandhi and Jawaharlal Nehru

• Indira Priyadarshini was born on November 19, 1917, in Allahabad to Jawaharlal Nehru and Kamala Nehru. Growing up during India's fight for freedom, her family was deeply involved in the struggle, exposing her to tumultuous events from a young age.
• As a child, she reportedly sacrificed an English-made doll on bonfires of foreign goods during the freedom movement. At 12, she led a group of children called the Vanar Sena, contributing by addressing envelopes, making flags, putting up notices, and delivering messages to freedom fighters.
• Indira attended various schools and colleges, including Ecole de Bex in Switzerland, Rabindranath Tagore's Visva-Bharati, and Somerville College, Oxford. In 1936, she joined the Indian National Congress, and by 1938, she became a member of the Indian League. It was during her time in England that she met Feroze Jehangir Ghandy.
• He was also a member of the Indian League and studying in London. Feroze was a Parsi. Indira returned to India in 1941 with Feroze Gandhi, and she married him in 1942. Feroze too was a member of the Indian National Congress and took part in the freedom struggle. Indira was an active participant in the Quit India Movement and was imprisoned in Naini Central Jail for some time.

 Political Journey after Independence

• Early Years and Family Involvement in Politics (Pre-Independence): After India gained independence, Jawaharlal Nehru became the prime minister, and Indira often acted as his hostess and accompanied him to events.
• Political Engagement and Personal Challenges: In the 1951-52 General Elections, Indira managed Feroze's campaign, who won a seat from Rae Bareilly. However, personal differences led to their separation. Feroze later exposed a corruption scandal before he died in 1960.
• Rise in Congress Party: Indira joined the Congress Party's working committee in 1955, becoming its president in 1959. After Nehru died in 1964, she entered the Rajya Sabha and served as the information and broadcasting minister under Lal Bahadur Shastri.

Historic Moment: Indira Gandhi Becomes Prime Minister 

On January 19, 1966, Indira Gandhi made history by becoming the third prime minister of India and the first woman to hold this position.

Indira Gandhi becomes the 3rd Prime Minister

• Challenges in the 1967 General Elections: The 1967 General Elections occurred during the time of economic difficulties, and although Indira won from Rae Bareilly, the Congress party faced a slim majority. Morarji Desai became the deputy prime minister and finance minister.
• Setbacks and Political Turmoil: The Congress party experienced losses in state assembly elections, leading to coalition governments and political defections, causing instability in the administration.

Congress Split and Minority Government at the Centre

Congress Split

1. Different Views in Congress: In the Congress party, there were disagreements between two groups - one that wanted to handle protests firmly, support private businesses, and improve relations with the US (right-wing), and another led by Indira Gandhi, who wanted significant economic changes that the conservative members didn't like (left-wing).
2. Plans for Change: Indira Gandhi, leading the Congress Working Committee, introduced a 10-point plan. This included controlling banks, more government involvement in foreign trade, taking over general insurance, setting limits on property ownership, providing food to the public, speeding up land reforms, and giving affordable housing to rural people. Her decision to take control of certain banks without asking the finance minister caused him to resign.
3. Controversial Presidential Election: After the president died in 1969, there was a disagreement in the Congress party about who should be the next president. The official choice was Neelam Sanjiva Reddy, supported by one group. However, Indira Gandhi, leaning towards socialist ideas, preferred V.V. Giri, who won the election.
4. Expulsion and New Faction: In November 1969, Indira Gandhi was kicked out of the Congress party by the president, S. Nijalingappa, for not following rules. Undeterred, she formed her own group called Congress (R) with support from many party members.
5. Losses in State Elections: The Congress party faced defeats in various states during local elections. The new governments in these states were often unstable, and politicians frequently switched from one party to another.

Indira Gandhi no longer had a majority in the Lok Sabha, but her government survived with issues-based support from regional parties (DMK and Akali Dal) and the communists.

The 1971 Elections: Indira Triumphant

Indira Gandhi: 1971 Elections

1. Challenges of Leading a Minority Government: Being in charge of a minority government made it hard for Indira Gandhi to make decisions independently. She faced difficulties in the Supreme Court and Parliament. To nationalize banks, she used a presidential order, fixing issues pointed out by the Supreme Court. Attempts to end privy purses and derecognize princes faced challenges in Parliament and the Supreme Court.
2. Early General Elections in 1971: In December 1970, Indira Gandhi chose to have early general elections held in 1971. The Congress (R) campaigned with the slogan 'Garibi Hatao' (remove poverty), aiming for social change, ending inequalities, and ensuring stable government.
3. Grand Alliance and Election Victory: Opposition parties not associated with Communism, such as Swatantra, Congress-O, and SSP, formed the Grand Alliance with the goal of 'Indira Hatao' (remove Indira). However, Congress (R) won the election with a substantial majority.
4. India's Success in 1971 War: India's victory over Pakistan in December 1971 and the subsequent creation of Bangladesh boosted Indira Gandhi's image. In the state assembly elections in March 1972, Congress (R) gained power in many states. This diminished the importance of Congress (O) and the Swatantra Party as significant opponents.
5. Impact of the Grand Alliance: Non-Communist opposition parties joined forces against Indira Gandhi, but Congress (R) still emerged victorious in the elections.
6. Significance of 1971 Victory: India's success in the 1971 war with Pakistan and the formation of Bangladesh had a positive impact on Indira Gandhi's reputation.
7. Success in State Elections: In the state assembly elections of March 1972, Congress (R) gained control in several states, reducing the influence of Congress (O) and the Swatantra Party.

Problems

Declining Popularity in 1973: Indira Gandhi's popularity went down in 1973, despite some government achievements. The main problem was high inflation caused by wartime expenses, drought, and the 1973 oil crisis. Poor monsoons affected agriculture and industry. World crude prices rose, making oil imports and petroleum products more expensive. Unemployment increased, leading to strikes, including a notable all India railway strike in May 1974.

Alienation of Social Classes: Influential social classes became disconnected from Indira Gandhi. Rich peasants didn't like land reforms, industrialists disliked widespread nationalization and socialist policies, and the middle class criticized rising prices and spreading corruption among officials and politicians. When Indira's son, Sanjay Gandhi, received a license and exclusive contract to produce a small fuel-efficient car, many people saw it as nepotism.

JP Movement 

JP Movement:1974

Protests Against Rising Prices:

Protest movements emerged in Gujarat and Bihar against increasing prices of essential goods. The Nav-Nirman Movement in Gujarat (December 1973 - March 1974) was significant enough for the central government to dissolve the state assembly. In Bihar, student protests transformed into the JP Movement, led by Jayaprakash Narayan (JP), focusing on corruption. JP called for 'Total Revolution' and demanded the resignation of the Congress government in Bihar, leading people to surround the legislature, offices, and refuse to pay taxes. JP aimed to draw the entire country into the protest to bring down what he portrayed as Indira Gandhi's corrupt and undemocratic government. People in many parts of North India supported JP's call, and non-left opposition parties rallied behind him. However, the movement lost momentum by the end of 1974.

Challenge and Change in 1976: Indira Gandhi challenged Jayaprakash Narayan to test his group's strength against Congress in the 1976 elections, and JP accepted. However, before the democratic contest could happen, circumstances changed drastically.

The Allahabad High Court Decision and the Imposition of Emergency

• The Court Verdict - June 12, 1975: On June 12, 1975, Justice Sinha of the Allahabad High Court decided on an election petition filed by Raj Narain against Indira Gandhi. Raj Narain accused her of corrupt practices during the 1971 election. The court ruled Indira Gandhi's 1971 election to the Lok Sabha as invalid, citing electoral malpractice, excessive spending, and the misuse of government resources for party purposes. This meant she could no longer be the prime minister and was barred from running for Parliament for six years.
• Appeal and Political Developments: An appeal was made in the Supreme Court, but before it could be resolved, significant political events unfolded. In the Gujarat assembly elections, the Congress party faced defeats and couldn't form a government. Simultaneously, the JP movement, demanding Indira Gandhi's resignation, gained momentum. Calls for a civil disobedience movement started on June 29.
• Declaration of State of Emergency - June 25–26, 1975: In response to the growing unrest and lawlessness, Indira Gandhi recommended to President Fakhruddin Ali Ahmed that a state of internal emergency be declared nationwide. The president declared a state of emergency on June 25–26, 1975, following the provisions of Article 352(1) of the Constitution. Notably, the prime minister's decision had not been endorsed by the cabinet, and they agreed to it only after the fact.

State of Emergency (1975-77)

Indira Gandhi announced the imposition of an Emergency on the nation, citing a widespread conspiracy against her progressive measures. 

President's rule was enforced in non-Congress states, and strong Congress chief ministers were replaced. Pending assembly elections were postponed indefinitely.

Repression and Suppression of Rights:

•  Opposition leaders, including Jayaprakash Narayan, and journalists were arrested under MISA. Organizations with extreme ideologies were banned. 
• Fundamental rights were suspended, civil liberties were curtailed, and laws were amended to limit judicial power. 
• Censorship was imposed on the press, leading to newspapers like The Indian Express and The Statesman expressing criticism.

Support for Emergency

• Initially, the middle class supported the Emergency for improved law and order and control on prices. 
• The Twenty-Point Program enthused the poorer sections. Some eminent personalities, like Khushwant Singh, supported it at first. 
• The Communist Party initially supported it but later regretted the decision.

Growth of Popular Discontent

• By mid-1976, discontent grew as economic improvements waned, criminals resumed activities, and welfare programs progressed slowly. 
• Strict discipline faced resistance, and Sanjay Gandhi's rise to power without responsibility caused anger. The atmosphere of fear and insecurity led to widespread resentment.
• Dark Period of Post-Independence History: The Emergency was considered one of the darkest periods in post-independent India. It institutionalized sycophancy in politics, paving the way for dynastic politics within the Indian National Congress. The 1976 AICC session in Guwahati marked the debut of Sanjay Gandhi, setting the stage for the rise of dynastic politics.

Elections of 1977

The End of Emergency - 1977

• After being extended twice, Indira Gandhi surprisingly called for elections. 
• Some believe she wanted public endorsement for the policies implemented under the Emergency rule, while others suggest her democratic instincts pushed her to end the draconian rule. 
• The announcement came in January 1977, with political prisoners released and press censorship lifted.

Opposition Unity

•  In response, the Jana Sangh, Congress (O), Bharatiya Lok Dal, and the Socialist Party formed the Janata Party.
•  In February, Jagjivan Ram, Nandini Satpathy, and Hemvati Nandan Bahuguna left the Congress to form the Congress for Democracy (CFD).
•  The CFD, Akali Dal, DMK, and CPM allied with the Janata Party to contest elections against the Congress and its allies, the CPI and AIADMK.

Historic Election: Janata Party Victory 

The Janata alliance focused on the excesses of the Emergency and civil liberties in its campaign. The March 1977 elections, essentially a referendum on the Emergency, resulted in a significant mandate for the Janata alliance, winning 330 out of 542 seats in the Lok Sabha. The Congress, especially in the north, suffered a major defeat, with both Indira Gandhi and Sanjay Gandhi losing their seats. The South, less affected by Emergency excesses, supported the Congress.

• Despite concerns that democracy might not recover in India due to widespread illiteracy, the elections demonstrated otherwise. The results showed that even the poor and illiterate understood the value of civil rights and wielded their political power wisely. The people of India ensured that democracy remained deeply rooted in the country. The Emergency officially ended on March 21, 1977.

Developments in the Political System

Changing Trends in Elections

1.  Increasing Malpractices: In the 1967 and 1971 elections, electoral malpractices like booth capturing and rigging became more common. The Election Commission noted a rise in casteism, especially in Bihar, influencing voting behavior nationwide.
2. Congress Changes: After winning the 1971 elections, the Congress led by Indira Gandhi became Congress (I) but dropped the 'I' later, indicating its claim as the 'real' Congress. Inner-party democracy within Congress continued to erode.
   

Growth of Regional Interests

1. After the 1967 elections, the Congress lost power in many northern states, leading to the formation and dissolution of the Samyukta Vidhayak Dal (SVD). Regional interests gained prominence, with southern states like Tamil Nadu feeling dominated by the north. This led to the rise of the Dravida Munnetra Kazhagam (DMK) in Tamil Nadu, reflecting growing political consciousness.
2. Other Regional Developments: In West Bengal, the Congress lost power in 1969, leading to a coalition government by the Communist Party of India (Marxist) (CPM) and the Bangla Congress. In Maharashtra, the Shiv Sena, demanding 'Bombay for Maharashtrians,' emerged as a significant party in 1966.
3. In Andhra Pradesh, there was a renewed agitation for the creation of Telangana with Hyderabad as its capital. Simultaneously, the Naxalites established themselves in rural areas. 
4. In 1966, Indira Gandhi accepted the Akalis' demand for the reorganization of Punjab on linguistic lines. This led to the formation of Haryana as a separate state for Hindi-speaking areas. However, the status of Chandigarh remained a contentious issue, declared a union territory and a shared capital by both states. The veteran freedom fighter, Darshan Singh Pheruman, fasted unto death, but the initially temporary arrangement continued indefinitely. 
5. Calls for Autonomy: Kashmir went through an election in 1967, reflecting tensions. In 1971, after the Indo-Pak war, Sheikh Abdullah agreed not to seek self-determination for Kashmir but aimed for greater autonomy. Similar demands for autonomy were observed in other regions like Telangana in Andhra Pradesh.
6. Border Areas and Separatist Movements: In Mizoram, the Mizo National Front (MNF) sought sovereign independence but accepted union territory status in 1971. Nagaland faced separatist movements, leading to the imposition of president's rule in 1975. Meghalaya, Manipur, and Tripura gained statehood in 1972.

 The Emergency imposed by Indira Gandhi in 1975 ended in March 1977, setting the stage for significant political changes in the upcoming elections.

Language Policy to Curb Anti-Hindi Disturbances

1. Responding to Language Disturbances (1967): 
   • Addressed disturbances with the Official Languages Act of 1967. 
   • Aimed to ensure fair use of Hindi and mother tongues.

2. Centralization of Power and Socialist Approach:

   • Indira Gandhi consulted key administrators for advice.

   • Advisors like P.N. Haksar, T.N. Kaul, D.P. Dhar, and R.N. Kao influenced her decisions.

   • Haksar, a socialist, played a significant role.

   • Embraced socialism, advocating for a stronger State role in the economy.

   • Considered the public sector vital for social integration.

3. Advisor Impact on Gandhi's Image:

   • T.N. Kaul: A diplomat with a career in diplomacy.

   • D.P. Dhar: A politician turned diplomat.

   • P.N. Dhar: An economist turned bureaucrat.

   • R.N. Kao: A security analyst.

   • Haksar's influence shaped Gandhi's image as pro-poor, a supporter of socialism in economics, and a secularist in religious matters.

   • Ramachandra Guha emphasized the advisors' role in shaping Gandhi's public image.

The Forty-Second Amendment Act: A Mini Constitution of Sorts

1. In 1976, a pivotal moment in Indian legislative history occurred with the introduction of the Forty-second Constitutional Amendment Act, often hailed as a "mini constitution" due to its sweeping changes. This comprehensive amendment added approximately 40 articles and introduced a new chapter to the Constitution, signifying a significant overhaul.
2. The alterations to the Preamble were noteworthy. India was redefined as a 'sovereign, socialist, secular, democratic republic,' and the phrase 'unity of the nation' was replaced with 'unity and integrity of the nation.'
3. Several key changes and additions were made. Amendments were positioned beyond the reach of courts, providing Parliament with unrestricted power to amend the Constitution. The authority of high courts and the Supreme Court in matters of judicial review and writ jurisdiction faced limitations. New directive principles were incorporated, gaining precedence over fundamental rights. Additionally, a new chapter was introduced to outline fundamental duties.
4. Furthermore, the term of the Lok Sabha was extended from five to six years, and the number of seats in constituencies for Lok Sabha and state legislative assemblies was frozen at the 1971 census level until the first census after 2000.
5. In addressing matters related to anti-national activities, laws enacted by Parliament took precedence over fundamental rights. The requirement for quorum in both Parliament and state legislatures was eliminated.
6. The amendment also touched upon issues of national emergency and state powers. The proclamation of a national emergency could now be made for a specific part of India's territory. The duration of president's rule without Parliament's approval was extended from six months to one year. Additionally, the Centre was granted the authority to deploy armed forces in a state in the event of a serious law and order situation. These changes resulted in a more unitary structure of the State.

Socio-Economic Policies

P.N. Haksar advised Indira Gandhi to gain control of her party by opposing the Syndicate on ideological grounds. Following this advice, she advocated the adoption of a socialistic path for the benefit of the country. Various measures were then implemented in line with this socialist ideology.

Nationalisation of Various Sectors of Economy

• Indira Gandhi aligned with the Young Turks, including Chandra Shekhar, to nationalize banks. She removed Morarji Desai, who opposed the idea, from the finance portfolio. In July 1969, 14 banks were nationalized through a presidential ordinance, later approved by Parliament as the Banking Companies (Acquisition and Transfer of Undertakings) Act.
• The prime minister explained on the radio that, as a young democracy, India needed to guard against the "domination of the few over the social, economic, or political systems." Public ownership of banks was intended to ensure financial accessibility to farmers and small industries. Private banks had previously failed, causing distress to depositors without any guarantee.
• Nationalization had positive outcomes, including the expansion of the banking sector in rural areas, an increase in deposits, growth in investment in the informal sector, and credit availability to farmers and small industries. In 1972, the differential interest rates scheme was introduced to provide credit to weaker sections at lower interest rates.
• After her re-election in 1971, Indira Gandhi went on to nationalize coal, steel, copper, refining, cotton textiles, and insurance industries. In 1973, following foreign-owned oil companies obstructing fuel supply during the 1971 war, she nationalized the oil companies. Since then, major oil companies have had to maintain a minimum stock of oil for military use when needed.

Abolition of Princely Privileges

Princely privileges end

• After India gained independence, the rulers of princely states, upon merging with the Union of India, were granted a 'privy purse' by the government. This purse, ranging from Rs 5,000 to Rs 26 lakh, was an annual payment to the rulers based on factors like their revenue, salute state status, and the dynasty's antiquity. Governed by Article 291 of the Constitution, this privy purse was a fixed, tax-free amount guaranteed to former princely rulers and their successors.
• However, the privileges accorded to these erstwhile rulers were frequently challenged and viewed by many as remnants of the past. Despite an unsuccessful attempt to abolish privy purses in 1969, the Twenty-sixth Amendment to the Constitution in 1971 finally ensured their abolition. The reasoning behind this decision was that the concept of rulership, with privy purses and special privileges, was considered incompatible with contemporary functions and social purposes.
• The amendment introduced Article 363-A into the Constitution, explicitly stating the termination of recognition granted to such rulers and the end of their privy purses. This move was seen not only as a matter of principle but also as a means to reduce the government's revenue deficit.
• In the context of social changes during Indira Gandhi's tenure, it was noted that numerous legislations of social significance were enacted. Indira Gandhi, often associated with socialist ideals, clarified that the term was used because it aligned to eradicate poverty. The move to abolish privy purses was to remove vestiges of aristocracy in post-independence India.

 MRTP Act

In 1969, the government led by Indira Gandhi successfully passed the Monopolies and Restrictive Trade Practices (MRTP) Act. This was done after getting rid of the managing agency system, which was believed to allow a small group of capitalists to control numerous industrial enterprises even though they had little financial stake in them.

MRTP Act

The purpose of the MRTP Act was to address the issue of a concentration of economic power held by a limited number of prominent business families. The Act aimed to prevent these families from having undue influence over a wide range of industries, ensuring a more equitable distribution of economic control.

Steps for Equity and Poverty Reduction

1. The government took steps to abolish the privy purses, ensuring a more equitable distribution of resources.
2. Banks were directed to prioritize lending to sectors that contributed to social equity.
3. The Indian Constitution included a clause advocating equal pay for equal work, promoting gender equality.
4. Land ceiling regulations were enforced rapidly, addressing both agricultural and urban land ownership. Legislation for redistributing land to marginal farmers was enacted in several states.
5. Initiatives included the distribution of food grains at affordable prices to vulnerable sections, a crash program for rural employment, construction of houses for landless laborers, the abolition of bonded labor, and a moratorium on debts of the poor.
6. Middle-ranking farmers from lower castes gained prominence due to these social changes, eventually challenging the political system in the North.

Tackling Economic Problems

1. In the mid-1960s, the Indian economy faced a crisis marked by challenges such as a shortage of food grains and a substantial fiscal deficit.
2. The balance of payments situation deteriorated, leading to a greater reliance on foreign aid.
3. The 1965 war with Pakistan resulted in the suspension of food aid from the United States, as the PL-480 agreement was not renewed.
4. To address economic challenges, India shifted from the traditional five-year planning to annual plans between 1966 and 1969.
5. Despite these efforts, inflation remained high, with only temporary relief during the Emergency.
6. Unemployment emerged as a significant problem during this period, adding to the economic challenges faced by India.

Devaluation of the Rupee

1. In the mid-1960s, India faced pressure from the US, World Bank, and IMF to reduce controls over trade and industry and to devalue the rupee.
2. In June 1966, under Indira Gandhi's leadership, the rupee was devalued by 36.5%, increasing the dollar's value against it by 57.4%.
3. The aim was to boost India's exports and acquire dollars to pay for imports of food, oil, and capital goods.
4. However, the step faced severe criticism, and the expected foreign aid and capital did not materialize as quickly as anticipated.
5. Despite facing challenges, the medium-term effect of devaluation was beneficial, helping India avoid famine and bankruptcy.
6. The trade deficit drastically reduced by 1970-71, preventing a debt crisis.
7. In the short term, devaluation led to inflation and proved less effective due to contradictory export-import policies.
8. The idea of liberalizing the economy was abandoned, and deficit control measures involved cutting government expenditure, leading to an industrial slowdown.
9. The Foreign Exchange Regulation Act (FERA) imposed restrictions on foreign investment and the operations of foreign companies in India.
10. Rather than closing down, sick companies were taken over by the government.
11. These steps brought short-term improvements, preventing a debt crisis and increasing foreign exchange and food grain purchases.
12. However, in the long run, some of these measures contributed to economic weaknesses, causing stagnation and slow growth in India.

Fifth Five-Year Plan

1. The Fifth Five-Year Plan (1974-79) didn't complete its full term, aligning mostly with the Emergency period.
2. The plan was closely tied to the Twenty-Point Programme, and during the Emergency, economic measures were forcefully implemented.
3. Despite being cut short due to the 1977 elections and the Janata government assuming power, the Fifth Plan saw the per capita income grow by over 5%.
4. The plan period concluded in 1978.

The Indo-Pak War of 1971 and the Birth of Bangladesh

Indo Pak War

The 1970 Polls in Pakistan and Unrest in East Pakistan:

• General Yahya Khan promised democratic restoration in Pakistan in 1970, leading to the first general elections based on adult franchise.
• Election results revealed a divide between the west, dominated by Pakistan People’s Party (PPP) led by Zulfigar Ali Bhutto, and the east, where Awami League led by Mujibur Rahman won a majority.
• Postponement of the National Assembly, endorsed by Zulfiqar Bhutto, triggered unrest in East Pakistan with the Awami League calling for a general strike.

Refugee Influx in India:

• Political turmoil in East Pakistan led to a massive influx of refugees into India.
• Awami League's call for a general strike intensified the crisis, raising humanitarian concerns due to the refugee situation.

  
  

War and Liberation of East Pakistan:

• In response to the violent crackdown by the Pakistani military regime in East Pakistan, India entered the war in 1971.
• The conflict resulted in the liberation of East Pakistan and the birth of Bangladesh as an independent nation.
• The war witnessed significant humanitarian challenges, including civilian casualties and displacement.

The Simla Agreement:

• Post the war, the Simla Agreement was signed in 1972 between India and Pakistan.
• The agreement aimed to normalize relations and resolve conflicts peacefully.
• It outlined principles for the return of prisoners of war and the establishment of a new equilibrium in the region post the creation of Bangladesh.
• The Simla Agreement played a crucial role in shaping the post-war scenario between India and Pakistan.