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Q.Assess the economic situation of India before the general elections of 1967.

(OR)
Why were the general elections of 1967 called as the political earthquake for Congress ? Examine any four reasons.
CBSECBSE Class XII Board 2019Subjective· 4mImportance★★★★★
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Part (a): Before 1967 India faced acute economic distress – droughts and food shortages, the cost of two wars, the 1966 devaluation, and steep inflation.

Part (b): 1967 was a political earthquake because Congress lost many states, its central majority shrank, a united opposition beat it, and economic distress plus the post-Nehru leadership vacuum hurt it.

Part (a)

The years just before the 1967 general elections were among the hardest India had faced. Agriculture was hit by two successive droughts in 1965 and 1966, which caused a sharp fall in food-grain production and severe shortages, forcing the country to depend humiliatingly on emergency wheat imports from the United States under the PL-480 programme. The economy had also been strained by two wars – with China in 1962 and Pakistan in 1965 – which sharply raised defence spending and diverted resources from development, while foreign aid was suspended during the conflict. In 1966 the government devalued the rupee under external pressure, an unpopular step that pushed up the prices of essential goods such as food grains, cooking oil and cloth. Industrial growth also slowed after the early Plan years. The combined result was inflation, unemployment and widespread public discontent, which formed the backdrop to the elections. …

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