The latter half of the 19th century saw remarkable growth in the Vernacular Press of the country and newspapers played a role of catalyst in the new socio-political consciousness.
Earlier, the newspapers were being published in Calcutta, Madras, Bombay, Allahabad only but later the newspapers started getting published from smaller places as well. Since most of the newspapers were published from smaller places, they were all in vernacular languages.
In 1878, when this act was passed, the number of English Newspapers was 20 and Vernacular newspapers were 200.
These vernacular newspapers made the people aware of political affairs and now the people slowly started asking questions for their rights.
So, in the best interest of the Government, Lord Lytton passed the Vernacular Press Act in 1878.