The Constitution of India vests the President with extraordinary powers to deal with abnormal situations. These emergency powers are enshrined in Part XVIII of the Constitution (Articles 352 to 360). There are three types of emergencies that the President can proclaim:
1. National Emergency (Article 352):
- Grounds: The President can declare a National Emergency when the security of India or a part of it is threatened by war, external aggression, or armed rebellion. (The term 'armed rebellion' was substituted for 'internal disturbance' by the 44th Amendment Act, 1978).
- Procedure: The President can proclaim this emergency only on the written recommendation of the Union Cabinet. The proclamation must be approved by both Houses of Parliament within one month.
- Effects: The federal structure of the country becomes unitary. The Centre gains the power to legislate on subjects in the State List and to give directions to any state. The life of the Lok Sabha can be extended. Most significantly, Fundamental Rights under Article 19 are automatically suspended, and the President can suspend the enforcement of other Fundamental Rights (except Articles 20 and 21).
2. State Emergency or President's Rule (Article 356):
- Grounds: This can be imposed on a state if the President is satisfied that the state government cannot be carried on in accordance with the provisions of the Constitution. This is often referred to as the 'failure of constitutional machinery'.
- Procedure: It is usually proclaimed based on a report from the Governor. The proclamation must be approved by Parliament within two months.
- Effects: The State Council of Ministers is dismissed, and the State Assembly is either suspended or dissolved. The President takes over the administration of the state through the Governor, and the Parliament makes laws for the state.
3. Financial Emergency (Article 360):
- Grounds: The President can proclaim a Financial Emergency if he is satisfied that a situation has arisen whereby the financial stability or credit of India or any part of its territory is threatened.
- Procedure: The proclamation must be approved by Parliament within two months.
- Effects: The Centre can give financial directions to any state. The President can order the reduction of salaries and allowances of all or any class of persons serving the Union or the states, including the judges of the Supreme Court and High Courts. State money bills can be reserved for the President's consideration.