On the night of 25 June, 1975 President of India declared emergency on the advice on the Prime Minister Mrs Indira Gandhi. Emergency affected the party system in many ways: -

1. The governing party had all the powers the leadership dared to suspend the democratic process. They still thought to continue their domination over the state.

2. A series of tension and difference arose between institution based democracy and democracy based on impulsive popular participation.

3. It was attributed to incapability of party system to include aspirations of the people. People started looking for alternatives in a new party.

4. The imposition of emergency made the opposition political leaders realise that they will simply disintegrate if they do not stand united against the authoritarian style of Indira Gandhi. Hence the leaders of various parties that came in contact with one another in jails resolved top form one party that is Janata Party.

5. The formation of Janata Party ensured that non-congress votes would not be divided. The 1977 elections proved referendum on emergency experience and masses rejected the congress party.

6. The elections of 1977 finally brought an end to the one party dominance system and gave birth to the system of Coalition government. With more than a single party in power and working together in the government.