Congestion is an important issue that can arise in packet switched network. Congestion is a situation in Communication Networks in which too many packets are present in a part of the subnet, performance degrades. Congestion in a network may occur when the load on the network (i.e. the number of packets sent to the network) is greater than the capacity of the network (i.e. the number of packets a network can handle.)
In other words when too much traffic is offered, congestion sets in and performance degrades sharply.