7/27/2019 New government in Delhi IAS Coaching

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New government in Delhi IAS Coaching that replaced the discredited Congress

The new government inDelhi IAS Coachingthat replaced the discredited Congressregime was a motley coalition of defectors from the Congress, socialists,

communists and Hindu nationalists that called itself the Kanata (People's) Party.While the anti-Emergency platform united the disparate units of the coalition, therewere other major areas of agreement as well. Above all, the politicians of the newruling coalition were ideologically opposed to multinational corporations. It matteredlittle to them that the sum total of foreign, primarily US, investment in India amountedto just a few million dollars. Their anti-multinational stance was also a politicalposture aimed at shoring up support among their various constituencies including bigbusiness, labour and the influential voluntary activist movement that took hold inIndia during the late 1970s. The new government targeted Coca-Cola and IBM, thetwo companies that were symbols of US investment in India. For example, withCoca-Cola, the government banned the import of concentrate, arguing that the

company should make its secret formula available to its Indian bottlers. Cokedemurred, preferring instead to wind up its operations. IBM, too, walked out. Thegovernment declared a victory.

The year was 1986. Encouraged by the Rajiv Gandhi government's liberal economicpolicies, the American soft drinks giant, Pepsi, sought to enter India. Pepsi was notthe first multinational ever to do business in India. Indeed, long before its advent,major multinational companies including Unilever, Colgate-Palmolive, ICI andvarious others established lucrative operations in India. However, Pepsi was the firstsignificant American company to seek entry after 1978 when a xenophobic Indiangovernment effectively forced Coca-Cola and IBM to wind up their businesses in

India. It is important to understand the 1978 events because the underlying issuesare still very much in evidence some twenty years later. The appropriate startingpoint is June 1975 when the Congress government under Indira Gandhi suspendedthe Indian Constitution for IAS Coaching centerand declared what has come to beknown as 'the Emergency'.

At that time, India faced economic dislocation wrought by the steep oil priceincreases commandeered by the Organization of Petroleum Exporting Countries(OPEC) two years previously. Inevitably, there was widespread political dissent. MrsGandhi's government saw in the rising unrest a threat to national security. Thegovernment announced 'an internal emergency' that empowered it to imprison

political opponents and curb the freedom of the press. The Emergency, however,created a national and international backlash. Over the next two years, the pressureof public opinion began to mount. Eventually, in 1977, Mrs Gandhi felt obliged to calla national parliamentary election, hoping to vindicate her political position. Theelection, in fact, became a referendum on the Emergency. In the event, the IndianNational Congress was humiliated at the polls, punished for its flirtation withauthoritarian rule under the Emergency.

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