The then Prime Minister Morarji Desai announced the currency ban. He scrapped Rs 1000, Rs 5000 and Rs 10,000. The government said that it was must needed move to curb the black money in the country.

Indira Gandhi was arrested and jailed for a week for breaching of privilege and contempt of Parliament in January. She was arrested for allegedly involved in ‘Jeep scam’. In December, Indira Gandhi was again arrested for the same alleged scam.

Air India Flight 855,  a scheduled passenger flight, was crashed during the evening of New Year's Day. The accident took place about 3 km off the coast of Bandra, Mumbai. All 213 passengers and crew on board were killed.

One of the greatest physicians Subhash Mukhopadhyay made history by creating world's second and India's first tube baby-Durga, using in-vitro fertilization. Durga was born 67 days after the first IVF baby in United Kingdom.