To protect the active order in the nation, Constitution provides the laws for emergency action. The unusual circumstances are to be dealt with by the provisions contained in Part XVIII of the Indian Constitution. These situations can be broadly classified under three head, which are given below[6]:-

a) National Emergency- Emergency due to war, external aggression or internal disturbance ( Art. 352 )
b) State Emergency- Emergency in case of failure of Constitutional machinery in States ( Art. 356 )
c) Financial Emergency- Emergency due to financial crisis (Art. 360)

1. The 21-month period between 1975 and 1977 is considered one of the darkest phases of Indian democracy when a state of emergency was declared across the country. Such a provision of imposing national emergency is guaranteed in the Article 352 of Indian Constitution. National emergency is imposed during war, external aggression or armed rebellion in the whole of India or a part of its territory.

2. The President declares national emergency based on the official request from the Prime Minister and the Council of Ministers. The state of emergency expires after a month unless its approved by the Parliament within that stipulated time frame. According to Article 352(6), the majority of both the houses is needed to approve emergency. The emergency period can be extended indefinitely by passing resolutions every six months.

3. During a national emergency, several Fundamental Rights are suspended along with the Right to Freedom. However, citizens are allowed to enjoy their Right to Life and Personal Liberty. When national emergency is imposed in the country, a unitary form of governance comes into effect with Parliament wielding the power to establish laws mentioned in the State List. Moreover, the state money bills are referred to the Parliament for its approval. During national emergency, the term of the Lok Sabha can be extended for up to one year.

1. When a state government is deemed unfit to function as per the Constitution and its political machinery collapses, it comes under direct control of the Union government. The power of running the state administration shifts from the Chief Minister to the Governor. He administers the state in the name of the President. Also known as the President's rule, the purpose of 'state emergency' is elaborately documented in the Article 356 of the Constitution

2. The state emergency comes into effect under different circumstances with one of them being the breakdown of a coalition government. Elections getting postponed or the state legislature failing to elect a leader as Chief Minister could be other viable reasons for the imposition of the Presidents rule. During this phase, the Governor has the authority to appoint ex-civil servants or other bureaucrats to assist him in discharging his duties.

3. Initially, such emergency is imposed for a period of six months and it can be extended for a period of three years provided the Parliament gives its approval for the same. In the past, the state emergency has been imposed for more than three years in states such as Jammu & Kashmir and Punjab. The extension was made possible only after constitutional amendment.

4. Sometimes, arbitrary imposition of Presidents rule by the Union government has received criticism from all quarters. Under Article 356, the purpose of giving wide powers to Union government is to maintain law and order in the country and preserve the unity and integrity of the nation. However, that power has often been misused. Imposition of state emergency for 39 times between 1966 and 1977 is a classic example. Be it the Indira Gandhis government or the Janata Party government, both used this power to dissolve state governments ruled by opposition parties.

5. The Supreme Court has reduced the scope for misuse of Article 356 by establishing strict guidelines for imposing state emergency. Since early 2000, the incidents of imposition of Presidents rule have dropped substantially. The Sarkaria Commission has opined that Article 356 must be used very sparingly and in extreme cases wherein there are no other viable alternatives to prevent complete failure of constitutional machinery in the state.

1. The Article 360 of the Indian Constitution has the provision for imposing financial emergency when the President is convinced that the economy is vulnerable and the financial stability of the country is under threat. The Parliament has to approve financial emergency within two months. Such emergency remains enforced till it is revoked by the President.

2. During financial emergency, the President gives directions to the state to adopt certain economic measures as he may deem necessary and adequate. He can reduce the salaries of all government officials, including judges of the Supreme Court and High Courts. The President has to approve all money bills passed by the State legislatures. Although India has witnessed economic volatility in the past, financial emergency was never imposed. The country had bailed itself out by putting its gold assets as collateral for foreign credit.