Read the passage and answer the question:

This was also the period when the government and the ruling party had many differences with the judiciary. Three constitutional issues had emerged- can the Parliament abridge Fundamental Rights? The Supreme Court said it cannot. Secondly, can the Parliament curtail the right to property by making an amendment? Again, the Court said that Parliament cannot amend the Constitution in such a manner that rights are curtailed. Thirdly, the Parliament amended the Constitution saying that it can abridge Fundamental Rights for giving effect to Directive Principles. But the Supreme Court rejected this provision also. This led to a crisis as far as the relations between the government and the judiciary were concerned.This crisis culminated in the famous Kesavananda Bharati Case. In this case, the Court gave a decision that there are some basic features of the Constitution and the Parliament cannot amend these features. Two developments further added to the tension between the judiciary and the executive.

Which of the following statement regarding the Emergency is incorrect?

It was proclaimed on grounds of deteriorating economic conditions.

The correct answer is Option 3 - It was proclaimed on grounds of deteriorating economic conditions.

Option 1- It was declared in 1975 by Indira Gandhi. (Correct)
Option 2- It led to the suspension of fundamental rights. (Correct)
Option 3- It was proclaimed on grounds of deteriorating economic conditions. (INCORRECT). On 25 June 1975, the government declared that there was a threat of internal disturbances and therefore, it invoked Article 352 of the Constitution. 
Option 4- The Communist Party of India CPI continued to back the Congress during the Emergency. (Correct)