(i) Decline of Congress: The defeat of the Congress Party in the election of 1989 marked the end of Congress dominance over the Indian party system. It could win only 197 seats in Lok Sabha.

(ii) Rise of Mandal Issue: The Mandal Issue started with the National Front Government’s decision to implement the recommendation of Mandal Commission in the jobs that in the Central government seats should be reserved for OBCs. This led to violent anti-Mandal protests in different parts of the country.

(iii) New Economic Policy: The government adopted new economic policy in 1991. It was started by Rajiv Gandhi. These changes first become visible in 1991. It radically changed the direction that the Indian economy had pursued since independence.

(iv) Demolition of Babri Masjid or Ayodhya dispute: Ayodhya dispute started with the demolition of the disputed structure of Babri Masjid at Ayodhya in December 1992. It led to various changes in politics of the country. It raised the question about the nature of Indian nationalism and secularism.

(v) Assassination of Rajiv Gandhi: The assassination of Rajiv Gandhi in May 1991 led to change in the leadership of the Congress. In the election of 1991, Congress emerged as the single largest party. P.V. Narsimha Rao was elected as the Prime Minister of India.