[1][2][4][5] The Constitution was amended to make it more difficult for any future government to declare a state of emergency; fundamental freedoms and the independence of India's judiciary was reaffirmed.

[4][5] The new government also proceeded to withdraw all charges against the 25 accused in the Baroda dynamite case, which included the new Minister of Industry, George Fernandes.

Specific inquiries were instituted on Sanjay Gandhi's management of the state-owned Maruti Udyog Ltd., the activities of the former Minister of Defence Bansi Lal and the 1971 Nagarwala scandal.

The policy proved controversial, diminishing foreign investment and led to the high-profile exit of corporations such as Coca-Cola and IBM from India.

The Janata government tried to curb forgery and black money in India by demonetising notes of 1000, 5000 and 10000 Rupees on 16 January 1978.