After the sudden death of Prime Minister Lal Bahadur Shastri, Indira Gandhi was elected as the leader of the Congress Parliamentary Party, making her the Prime Minister of India. She faced challenges from within the party's old guard.

The 1967 general elections saw a decline in the Congress Party's dominance. Indira Gandhi faced internal opposition and had to navigate a complex political landscape.

A major split occurred within the Congress Party, leading to the formation of Congress (R) (led by Indira Gandhi) and Congress (O) (led by the old guard). This split strengthened Indira's position and allowed her to pursue her socialist policies more aggressively.

Indira Gandhi nationalized 14 major commercial banks in India, a bold move aimed at reducing private control over the economy and directing credit towards agriculture and small-scale industries. This decision was widely popular but also drew criticism from business circles.

The Indo-Pakistani War of 1971, triggered by the crisis in East Pakistan (now Bangladesh), led to a decisive Indian victory and the creation of Bangladesh. Indira Gandhi's leadership during the war significantly enhanced her image both domestically and internationally.

She successfully used the slogan Garibi Hatao (Eradicate Poverty) in the 1971 election, focusing on poverty reduction. This policy was aimed at helping the poor, but did not end up eradicating poverty.

Faced with political unrest and allegations of electoral malpractice, Indira Gandhi declared a state of emergency in 1975. Civil liberties were suspended, political opponents were arrested, and the press was censored. The Emergency remains a highly controversial period in Indian history.

During the Emergency, controversial policies such as forced sterilization programs were implemented to control population growth. These programs were widely criticized for human rights abuses and contributed to public resentment towards the government.

Indira Gandhi called for general elections in 1977, but the Congress Party suffered a crushing defeat. The Janata Party, a coalition of opposition parties, came to power. This marked the end of Indira Gandhi's first term as Prime Minister.