Problems

The huge enthusiasm for Indira Gandhi, however, started fading by 1973, in spite of some important achievements of the government. Economic problems grew. The main issue was high inflation that followed from the war time expenses, drought in some parts of the country and the oil crisis of 1973. Food grains production declined due to poor monsoons, and low agricultural growth had its adverse impact on industry

as well. As world crude prices soared, India was affected by high costs of import and the resulting high prices of petroleum products. Unemployment grew. There were strikes, the most notable one being the all-India railway strike in May 1974. Most the influential social classes got gradually alienated from Indira Gandhi – the rich peasants resented land reforms, the industrialists resented the wide scale nationalisation and socialistic policies, and the middle classes were deeply affected by the price rise and were critical of the spreading corruption among officials and politicians. The fact that Sanjay Gandhi, Indira Gandhi’s second son, was entrusted with the venture of producing a small fuel efficient Indian car and was handed the contract and the exclusive production licence, though he had little experience in the field, was seen by most people as nepotism.