Chandra Shekhar resigned from the post of Prime Minister of India on March 6, 1991, after losing the crucial outside support of the Indian National Congress.

His government was a minority one, formed with the help of a breakaway faction of the Janata Dal and supported externally by Congress. However, this alliance was fragile from the start.

The immediate reason for his resignation was the Congress party's walkout from Parliament during the budget session. This move signaled a breakdown in the working relationship between Chandra Shekhar and Congress, particularly over issues like security arrangements at Rajiv Gandhi's residence.

Feeling betrayed and humiliated, Chandra Shekhar accused Rajiv Gandhi of acting in bad faith and announced he could no longer continue under such conditions.

With no majority and no way to pass the national budget, a political crisis followed. As a result, Chandra Shekhar stepped down, ending his seven-month term, one of the shortest in Indian history.

He remained as caretaker Prime Minister until new elections were held, after which P. V. Narasimha Rao became the next Prime Minister.