Emergency: The Emergency, a 21-month period (June 1975–March 1977), marked a critical phase in Indian politics. It was declared by President Fakhruddin Ali Ahmed on the advice of Prime Minister Indira Gandhi amid growing political instability. Imposed under the constitutional provision for ‘internal disturbance’ (Article 352), it led to the suspension of civil liberties, press censorship, and mass arrests of opposition leaders. Judicial powers were curtailed and controversial policies, including forced sterilisation, were implemented. Though justified as a means to restore order, the Emergency was widely condemned as authoritarian. Its abrupt end in 1977 and the electoral defeat of Indira Gandhi reaffirmed democratic accountability and reshaped India’s political consciousness.
Liberalisation, Privatisation, and Globalisation of Indian Economy: Since Independence, India followed a mixed economic model combining socialist planning with market mechanisms. Over time, excessive regulation, low productivity, and inefficient public sector enterprises constrained growth. In 1991, a severe balance of payments crisis forced India to rethink its development strategy. As a response, the government introduced the New Economic Policy based on liberalisation, privatisation and globalisation (LPG).
Liberalisation aimed at reducing government controls by deregulating industries, reforming financial sector, rationalising taxes, and opening trade and foreign exchange markets. Privatisation sought to improve efficiency by disinvesting government ownership and granting autonomy to public sector enterprises. Globalisation integrated the Indian economy with the world through trade liberalisation, foreign investment, outsourcing, and participation in global institutions such as the World Trade Organization.
These reforms accelerated GDP growth, boosted foreign exchange reserves, and expanded the services sector. However, they also raised concerns regarding employment generation, agriculture, inequality, and social welfare. Thus, LPG reforms brought both opportunities and challenges, reshaping India’s economic landscape.
