The emergency powers:

During the declaration of national emergency, the government is changed to a
unitary form, from a federation. Hence, the central government exercises the
legislative and executive power of the state but state legislature or executive are not
dissolved.
 If emergency is declared in a particular state due to failure of constitutional
machinery there, the legislative powers goes into the hands of the center and the
executive power goes in the hands of the President.
 In case of declaration of financial emergency by the President, the center is again
authorized to issue directions concerning the economy of the state and they will
obey it.