6.1.1. 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.

After the Congress party took power with the promise to 'remove poverty' in the 1971 elections, the economic situation in India did not improve as expected. The phrase 'garibi hatao' was a rallying cry, but by 1973, it was clear that poverty and economic issues persisted, leading to widespread dissatisfaction among the populace.

Think of a promise made by a political candidate during a campaign. If they promise to create jobs and improve the economy, but after years, people still struggle to find work, they would feel disappointed and possibly deceived. This was similar to India's experience after the 1971 elections.

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.

The economic strain on India was exacerbated by the Bangladesh crisis, where millions fled into India, overwhelming resources. Additionally, the war with Pakistan further disrupted the economy, leading to more difficulties for the Indian government in stabilizing both the political and economic landscape.

Imagine a town that suddenly has to take in thousands of refugees from a neighboring area due to a war. The town’s schools, healthcare, and job opportunities would be stretched thin, leading to struggles for both the refugees and local residents.

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.

The cessation of U.S. aid and skyrocketing oil prices contributed to severe inflation in India. As the cost of essential commodities rose significantly, the purchasing power of ordinary people drastically fell, resulting in widespread economic hardship and increasing public discontent.

If a family’s budget is tightly managed, and suddenly the prices of groceries and gas spike, they would have to cut back on non-essential items, possibly leading to frustration and stress. This mirrors what ordinary Indians faced during the inflationary period.

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. Monsoons failed in 1972-1973. This resulted in a sharp decline in agricultural productivity. Food grain output declined by 8 per cent.

The period was characterized by a significant slowdown in industrial growth and high unemployment, particularly affecting rural workers. Additionally, failed monsoons led to a reduction in agricultural productivity, compounding the economic crisis as food insecurity rose.

Consider a farm that relies on regular rainfall for crops. If the rain fails and crops do not grow, not only do the farmers suffer, but so do the families reliant on them for food. This is akin to the economy's overall struggle as agricultural output decreased.

There was a general atmosphere of dissatisfaction with the prevailing economic situation all over the country. In such a context, non-Congress opposition parties were able to organize popular protests effectively.

Public dissatisfaction with the economic crisis led to increased activism and protests, primarily driven by opposition parties. The struggles faced by citizens fostered mobilization and led to numerous protests against the Congress government, showcasing the growing discontent.

When a community faces rising prices and job losses, it's common for them to come together and demand change or assistance from the government. This mobilization reflects the collective frustration of citizens dealing with economic hardships.

Instances of students’ unrest that had persisted from the late 1960s became more pronounced in this period. There was also an increase in the activities of Marxist groups.

Student unrest, which had been a trend in the late 1960s, escalated as economic conditions worsened. Many students became politically active, demanding change and justice. Radical groups, inspired by Marxist ideologies, began to organize more overtly, challenging the status quo.

Think back to a time when young people took to the streets to protest for climate action. Just as today’s youth advocate for issues they care about, students during this time voiced their frustrations with the government’s handling of the economy.

Students’ protests in Gujarat and Bihar, both of which were Congress ruled States, had far-reaching impacts on the politics of the two States and national politics.

The widespread student protests in Gujarat and Bihar targeted issues like inflation and corruption and showcased the growing opposition to the Congress party's policies. These movements not only influenced local politics but had significant implications for national political dynamics.

Consider the impact of a grassroots movement that sparks interest and participation across the country. Just as local movements can lead to greater political changes, the student protests during this time galvanized opposition against the Congress government.

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