Indira made the party into her own puppet organisation while economic malaise and unemployment started deepening. Suppression of railway strikes in 1974 led to fall in working-class support. Centralisation of power and increasing influence of business magnates (which led to more corruption) stoked protests in states like
Gujarat and
Bihar. Sycophantic party leaders who promoted Indira Gandhi's
cult of personality further contributed to the rot in leadership. The regime reached its absolute nadir with the disqualification of Indira and the subsequent proclamation of
Emergency. Leaders like
Jagjivan Ram and
Hemvati Nandan Bahuguna left the party as the Emergency became unpopular. Both went on to form
Congress for Democracy on February 2, 1977, which eventually merged with
Janata Party. In July 1977, Karnataka CM
Devaraj Urs resigned and formed
Congress (U). The party was voted out of from power after the emergency was lifted and elections were conducted in
1977.
Indian National Congress (Indira) In 1978, following the resignation of several leaders such as
Nandini Satapathy, who criticised abuses during the Emergency, and amid internal contestation between Indira Gandhi’s nominee
K. Brahmananda Reddy and
Siddhartha Shankar Ray for the post of party president, Indira Gandhi broke away from Congress (R) to form Congress (Indira). Ahead of the
1996 general election, Congress (I) dropped the suffix “Indira” from its registered name. Meanwhile, Congress (O) had earlier merged with parties such as the
Bharatiya Jana Sangh and others to form the
Janata Party, a broad anti-Congress nationalist political formation. == See also ==