It is important to understand what the events were in the Indian history that led to the emergency.
"Rising prices fall in the supply of essential commodities, unemployment, and more importantly, corruption in government administration."
From the early 1970s onwards, wide-spread discontent shook India: large sections of the population came out in demonstrations against rising prices, fall in the supply of essential commodities, unemployment, and more importantly, corruption in government administration. These protests reached a crescendo (climax) in two states - Gujarat and Bihar - in 1974, with students leading the agitations and giving them an organized shape. The Gujarat state government ruled by Indira Gandhi's Congress Party was forced to resign that year. In fresh elections to the Gujarat legislature in early June, 1975, the Congress was trounced and the opposition parties formed the new government in that state. Indira realized that she was losing her grip, and was threatened by a political crisis.
June 12, 1975, Allahabad Conviction
The threat became imminent when on June 12, 1975, the Allahabad high court of the state of Uttar Pradesh (from where Indira Gandhi won in the parliamentary election in 1971), declared her election invalid on two corruption charges in the conduct of her poll campaign at that time. She was accused of violating the Indian law by first, using an officer of her government to make campaign arrangements, and secondly, by using other state officers to put up speaker's stands in her constituency and supply electricity to her amplifying equipment. The high court judgment debarred her from holding the office of prime minister, but granted a stay of the order for 20 days - to allow her party to choose another leader (since the Congress party still enjoyed a majority in the Indian parliament).