The Government of India Act 1935 and the Congress Ministries (1937 to 1939)

Under the Government of India Act 1935, provincial elections were held in 1937, and the Congress formed ministries in eight of the eleven provinces.

The Government of India Act, 1935

It gave provincial autonomy (dyarchy ended in the provinces), proposed an All-India Federation (never started), created the Federal Court (1937), the Reserve Bank of India (1935), and separated Burma (1937) and made Sind and Orissa provinces. The Congress rejected it as "a charter of slavery" but decided to contest the elections. See Polity: Historical Background for full provisions.

The 1937 elections

• Held in early 1937 in 11 provinces. The Congress won a clear majority in five provinces (Madras, Bihar, Orissa, UP, Central Provinces), and was the largest party in Bombay, Assam and the NWFP. It formed ministries in eight provinces (with Bombay, Assam and NWFP added).
• The Muslim League did poorly (it won only about a fifth of Muslim seats) and could not form a ministry in any province with a Muslim majority. In Bengal and Punjab regional parties formed governments (Fazlul Haq's Krishak Praja Party and the Unionist Party).

Congress ministries at work

• Work: released political prisoners, lifted bans on the press and organisations, passed tenancy and debt-relief laws, improved civil liberties, and introduced the Wardha (Basic) education scheme.
• Controversies: the League accused the ministries of favouring Hindus (the Pirpur Report, and the Vidya Mandir scheme, the Congress flag and "Bande Mataram" disputes). Jinnah refused to be part of a Congress-League coalition in UP in 1937 unless the Congress accepted the League as the sole representative of Muslims.
• Haripura (1938): Subhas Chandra Bose was Congress president, and the National Planning Committee was set up under Nehru. Tripuri (1939): Bose defeated Pattabhi Sitaramayya (Gandhi's candidate) but resigned after differences with Gandhi, and formed the Forward Bloc (May 1939). Rajendra Prasad became president.
• Resignation: On 3 September 1939 the Viceroy Linlithgow declared India at war with Germany without consulting Indian leaders. The Congress ministries resigned in October to November 1939. Jinnah celebrated a "Day of Deliverance" (22 December 1939).