Understand the causes and consequences of the 1969 Congress split.
Analyze the economic challenges and political tensions during the period.
Examine Indira Gandhi’s strategies and the ideological conflicts within Congress.
Explore the impact of the Bangladesh crisis and its aftermath.
The Congress Split of 1969
The split in the Congress party in 1969 was the result of multiple factors, building upon earlier tensions. These conflicts had already been visible in the 1967 electoral losses that highlighted the decay of the Congress party.
Key Events Leading to the Split:
The Congress faced poor performance in the mid-term elections of February 1969 in four states, which revealed the need for serious internal reforms.
Economic conditions worsened, including the slowdown in economic growth and a crisis in planning, exacerbated by declining US aid.
Corruption and the growth of the black economy contributed to widespread unrest, with increasing violence such as the rise of the Naxalite movement.
Political tension arose between the ministerial and organizational wings of Congress, with Indira Gandhi struggling to assert her authority over the conservative Syndicate.
Ideological Conflicts Within Congress
The ideological struggle within Congress intensified after the 1967 elections, reflecting broader political divisions in the country.
Main Ideological Divisions:
Congress was split between a right-wing faction, led by figures like Morarji Desai and Nijalingappa, and a left-wing faction, which promoted a more socialist agenda.
The Ten-Point Programme of 1967, which advocated for radical economic reforms, including social control of banks, was a key point of contention.
The right-wing faction pushed for less state intervention in the economy, aligning with private enterprise and foreign capital.
The left-wing faction, supported by Indira Gandhi over time, advocated for deeper reforms, emphasizing economic concessions for the poor, and a reduction in foreign dependence.
Important Note: The inner-party ideological battle was not only about personalities but reflected a deeper conflict about the future direction of India’s economic and social policies.
The Struggle for Power
By 1969, the conflict within Congress reached a turning point, as the Syndicate openly plotted to remove Indira Gandhi from power.
Major Developments:
Nijalingappa’s diary entries in early 1969 reveal plans to dislodge Indira Gandhi, with support from Morarji Desai.
Despite her cautious approach, Indira Gandhi stood firm on retaining the supremacy of the prime minister’s office.
The ideological division in Congress became sharper, with left-leaning Congressmen advocating socialism while the right-wing faction sought to maintain the status quo.
Nationalization of Banks and the 1969 Split
The split in Congress was solidified following the Presidential election of 1969.
Key Moments:
Indira Gandhi’s decision to nationalize 14 major banks in July 1969 marked a decisive shift in her policies.
The Syndicate’s candidate for President, Sanjiva Reddy, was opposed by V.V. Giri, who was backed by left-wing parties and eventually won the election.
The Syndicate expelled Indira Gandhi from the party in November 1969, leading to the formation of two factions: Congress (R), led by Indira, and Congress (O), dominated by the Syndicate.
Towards the 1971 General Elections
Following the split, Indira Gandhi’s political power grew, but she still faced challenges from opposition parties.
Political Developments:
Indira Gandhi positioned herself as a champion of the masses, with the slogan “Garibi Hatao” (Remove Poverty) forming the core of her 1971 election campaign.
The Grand Alliance, formed by non-Communist opposition parties, campaigned on personal attacks against Indira, but it lacked a coherent ideology.
The 1971 elections were a personal triumph for Indira Gandhi, with Congress (R) winning a two-thirds majority, enabling her to push for further reforms.
Important Note: The 1971 elections demonstrated the viability of building a coalition around the poor and disadvantaged groups, a strategy that would shape Indian politics for years to come.
Aspect
Congress (R)
Congress (O)
Ideology
Left-of-center, socialist-leaning
Right-of-center, conservative
Leadership
Indira Gandhi
Syndicate (Nijalingappa, Desai)
Support Base
Urban/rural poor, disadvantaged
Business interests, landowners
Economic Policy
Nationalization, radical reforms
Less state intervention
The Challenge of Bangladesh
After the 1971 elections, India was soon drawn into the Bangladesh crisis, a defining event of Indira Gandhi’s tenure.
Key Aspects of the Crisis:
The crisis began with Yahya Khan’s military crackdown on East Pakistan in March 1971, following the Awami Party’s election victory.
Mujibur Rahman was arrested, and millions of refugees fled to India, creating a major humanitarian crisis.
Indira Gandhi pursued a calculated and restrained approach, preparing for war while seeking international support.
The War and India’s Victory
The Indo-Pak war over Bangladesh was brief but transformative for India’s position in South Asia.
Military and Diplomatic Strategy:
India provided sanctuary to the Bangladesh government in exile and trained the Mukti Bahini.
The Indian military, led by General J.S. Arora, launched a swift and decisive campaign, resulting in Pakistan’s surrender on 16 December 1971.
The US and China were hostile toward India, but Soviet support through the Indo-Soviet Treaty helped neutralize their influence.
Important Note: The Bangladesh war demonstrated the strength of Indian secularism, as people from all religious backgrounds united during the crisis. It also dealt a significant blow to the two-nation theory that had underpinned the Partition of 1947.
Country
Stance in Bangladesh War
Role in Conflict
United States
Hostile towards India, supported Pakistan
Sent Seventh Fleet to Bay of Bengal
Soviet Union
Supported India
Vetoed UN resolutions against India
China
Backed Pakistan
Limited to verbal condemnations
Post-War Settlement and Simla Declaration
In the aftermath of the war, Indira Gandhi recognized the need for a peaceful settlement with Pakistan to ensure long-term stability.
Key Outcomes of the Simla Declaration (1972):
India returned Pakistani territory captured during the war but retained some strategic points in Kashmir.
Both countries agreed to respect the Line of Control (LoC) in Kashmir and settle disputes bilaterally without outside interference.
The agreement laid the foundation for a peace process, though tensions remained.
A Time of Success
By 1972, Indira Gandhi’s political dominance was unchallenged, and conditions seemed favorable for fulfilling her reformist agenda.
Key Achievements:
Congress won state elections in 1972, consolidating power both at the Centre and in the states.
The government undertook significant economic reforms, including the nationalization of general insurance and the coal industry.
Ceilings on urban landownership were imposed, and legislation for land reforms was passed in several states.
The MRTP Act (Monopolies and Restrictive Trade Practices) aimed at curbing economic concentration in a few hands was implemented.
Important Note: Despite pressures from left-wing factions, Indira Gandhi did not push for further nationalization of industry, remaining committed to a mixed economy model.
Reform Area
Key Policy
Outcome
Industry
Nationalization of insurance and coal
Reduced private sector control in key industries
Land Reforms
Ceilings on landownership
Redistribution of surplus land to landless
Financial Inclusion
Expansion of bank branches
Greater access to credit for small entrepreneurs
Constitutional Amendments and Economic Reforms
Two major constitutional amendments were passed during this period to support the government’s reform agenda.
Key Amendments:
The 24th Amendment restored parliament’s authority to amend Fundamental Rights.
The 25th Amendment allowed the government to decide on compensation for private property acquisitions.
These amendments helped the government bypass judicial obstacles that had previously hindered its nationalization and land reform efforts.
The Pokhran Nuclear Test
On 18 May 1974, India successfully detonated an underground nuclear device at Pokhran, marking a major achievement in science and technology.
Key Aspects of the Test:
The government maintained that the test was for peaceful purposes and not aimed at developing nuclear weapons.
This development showcased India’s growing capabilities in nuclear technology and bolstered national pride.
Conclusion of the Era
By 1974, however, the initial success of Indira Gandhi’s leadership began to unravel, leading to growing political unrest. The J.P. movement in 1974 signaled increasing dissatisfaction, ultimately leading to the Emergency in 1975, which marked a significant shift in India’s political landscape.
MCQ What was the primary focus of the 24th Amendment passed by the Indian parliament in 1971? A. Expanding the powers of the judiciary B. Allowing nationalization of banks C. Restoring parliament’s authority to amend Fundamental Rights D. Abolishing the privy purses of the princes Answer: C. Restoring parliament’s authority to amend Fundamental Rights