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Today, letβs explore the economic challenges India faced after the 1971 elections. Who remembers what the Congress party's main slogan was during that election?
It was 'garibi hatao' which means 'remove poverty'.
Exactly! Unfortunately, despite that promise, the economy struggled. What were some reasons behind this economic hardship?
The Bangladesh crisis led to a lot of refugees coming into India, which put pressure on resources.
And there was inflation which soared to about 30% in 1974!
Great points! Inflation indeed became a critical issue. It's important to remember inflation as a key economic term, as it affects purchasing power and stability. Let's summarize: the refugee crisis and skyrocketing inflation were significant factors leading to dissatisfaction with the government.
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Now let's talk about unemployment, which was particularly high in rural areas during this time. Why do you think this was?
I think it was because of the decline in agricultural productivity due to failed monsoons.
Exactly! The failure of monsoons led to an 8% decline in food grain output, drastically affecting farmers. This situation stoked unrest. Can anyone connect this to other social movements during that time?
Yes! There were student protests and movements like the Bihar Movement that emerged during this discontent.
Correct! These agitations were responses to economic and political grievances. The dissatisfaction with unemployment and scarcity played a huge role in rallying opposition against the Congress party.
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Continuing from the last session, how did the protests in Gujarat and Bihar embody the dissatisfaction with the government?
They were focused on issues like the rising prices and corruption, right?
Yes! The Bihar movement even led Jayaprakash Narayan to call for total revolution!
Precisely! These protests were pivotal in challenging the Congress's authority. How do you think this environment of unrest influenced the governmentβs decision to impose the Emergency?
The government probably felt threatened by the protests and wanted to restore order, so they took drastic measures.
Spot on! The unrest indeed contributed to an environment where the government felt the need to assert power through the Emergency.
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This section discusses the deteriorating economic conditions in India during the early 1970s, highlighting the impact of the Bangladesh crisis, inflation, unemployment, and social movements that ultimately contributed to the imposition of the Emergency in 1975.
In this section, we delve into the significant economic challenges faced by India from the aftermath of the 1971 elections until the imposition of the Emergency in 1975. Despite the Congress party's slogan of garibi hatao (remove poverty) during the 1971 elections, the socio-economic conditions did not improve significantly. The Bangladesh crisis strained India's economy, as millions of refugees poured in, coupled with the subsequent war, led to severe resource constraints. This economic backdrop saw inflation soar to 23% in 1973 and an unprecedented 30% in 1974, causing widespread hardship across the nation.
Industrial growth stagnated while unemployment levels, particularly in rural areas, increased significantly. As a response to these pressures, the government froze salaries of its employees, exacerbating dissatisfaction among workers. Additionally, failed monsoons in 1972 and 1973 led to a sharp decline in agricultural productivity, compounding food scarcity. The general atmosphere of discontent provided fertile ground for anti-Congress sentiments to rise, leading to protests, student unrest, and the emergence of radical groups like the Naxalites.
The Gujarat agitation and the Bihar movement epitomized the national discontent, culminating in widespread calls for reform and action against corruption, all of which set the stage for the drastic measures of the Emergency period.
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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.
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The Bangladesh crisis had put a heavy strain on Indiaβs 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 townβs schools, healthcare, and job opportunities would be stretched thin, leading to struggles for both the refugees and local residents.
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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 familyβs 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.
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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.
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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.
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Instances of studentsβ 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 todayβs youth advocate for issues they care about, students during this time voiced their frustrations with the governmentβs handling of the economy.
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Studentsβ 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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Key Concepts
Economic Crisis: The severe challenges India faced during the 1970s including high inflation and unemployment.
Inflation Rates: The unprecedented rise in inflation, reaching 30% in 1974, which led to significant hardship.
Unemployment: High levels of unemployment particularly in rural areas due to agricultural declines.
Civil Unrest: The emergence of protests that challenged the government's authority leading to the eventual imposition of the Emergency.
See how the concepts apply in real-world scenarios to understand their practical implications.
The price of essential commodities rose sharply during the 1970s, contributing to widespread dissatisfaction among the population.
Student protests in Gujarat exemplified the organized opposition against rising food prices and corruption in government.
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In '74, inflation did soar, thirty percent made life a chore.
Once there was a country, India, where the leaders promised to remove poverty. But famine and strife came knocking as protests burned bright for change.
Remember 'BIRP': Bangladesh crisis, Inflation rise, Rural unemployment, Protests soared.
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Review the Definitions for terms.
Term: Garibi Hatao
Definition:
A slogan meaning 'remove poverty', used by the Congress party during the 1971 elections.
Term: Inflation
Definition:
The rate at which the general level of prices for goods and services rises, eroding purchasing power.
Term: Naxalite Movement
Definition:
A leftist insurgency movement in India that seeks to overthrow the established political systems through armed rebellion.
Term: Total Revolution
Definition:
A call for a comprehensive revolution covering social, economic, and political aspects, famously advocated by Jayaprakash Narayan.
Term: Bihar Movement
Definition:
A large-scale protest led by students in Bihar against economic conditions and corruption, which sought broader social reforms.