Examine grave economic crises prior to …

Indira Gandhi government devalued Indian rupee to check economic crisis of 1967. Consequently, one US dollar could be purchased for less than  5 after the devaluation, it cost more than  7. 

1. The economic situation triggered a price rise. 

2. People started a protest against the increase in prices of essential commodities and unemployment etc. 

3. The Communist and Socialist parties launched struggle to avail greater equality. 

The fourth general election was held in 1967 for the first time without Nehru: 

1. The election verdict was not in favor of Congress and results jolted the Congress both at the national and state levels. 

2. Half the ministers in Indira Gandhi’s cabinet were defeated including K. Kamaraj in Tamilnadu, S.K. Patil in Maharashtra, Atulya Ghosh in West Bengal, K.B. Sahay in Bihar. 

3. Congress did not lose the only majority in seven states but two other states also prevented it to form the government due to defections. 

4. For the first time, any non-Congress party secured a majority in any state and in other eight states, different non-Congress parties formed the coalitions. 

5. These election results were called as a ‘Political Earthquake’.