What was the electoral verdict of …

Under the leadership of Indira Gandhi, the Indian National Congress won a fourth consecutive term in power and over 54% of the seats, while no other party won more than 10% of the votes or seats. However, the INC's victory was significantly lower than the results they had achieved in the previous three elections under Jawaharlal Nehru. By 1967, economic growth in India had slowed – the 1961–1966 Five-Year Plan gave a target of 5.6% annual growth, but the actual growth rate was 2.4%. Under Lal Bahadur Shastri, the government's popularity was boosted after India prevailed in the 1965 War with Pakistan, but this war (along with the previous 1962 War with China) had helped put a strain on the economy. Internal divisions were emerging in the Indian National Congress and its two popular leaders Nehru and Shastri had both died. Indira Gandhi had succeeded Shastri as leader, but a rift had emerged between her and Deputy Prime Minister Morarji Desai, who had been her rival in the 1966 party leadership contest

Major changes country witnessed at the time of Fourth General Elections’

(i) Two prime ministers died in quick succession.

(ii) The period was fraught with grave economic crises.

(iii) Widespread drought and decline in agricultural production.

(iv) Serious food shortage.

(v) Depletion of foreign exchange reserves.

(vi) Drop in industrial production and exports.

(vii) Sharp rise in military expenditures.

(viii) Diversion of resource from planning and economic development.