Indira Gandhi government devalued Indian rupee to check economic crisis of 1967. Consequently, one US dollar could be purchased for less than ? 5 after devaluation, it cost more than ?
• The economic situation triggered a price rise.
• People started protest against increase in prices of essential commodities and unemployment etc.
• 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 favour 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 Tamil Nadu, S.K. Patil in Maharashtra, Atulya Ghosh in West Bengal, K.B. Sahay in Bihar.
3. Defection played a major role in making or unmaking of government. The Congress did not lose only majority in seven states but two other states also prevented it to form government due to defections.
4. In Madras (Tamil Nadu) a regional party came to power by securing a clear majority. This was the first time any non-Congress party had secured a majority of its own in any state.
5. For the first time any non-Congress party secured majority in any state and in other eight states i.e. Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Bihar, West Bengal, Orissa (Odisha) and Kerala, different non-Congress parties formed the , coalitions.
6. These election results were called as a ‘Political Earthquake’. Hence, the domination i to the Congress was over.
