Question

Describe any 3 effects of the great depression of 1929 on the indian economy .?

Answer 1

India was affected in many ways. These are as follows.
1) The great depression badly affected our country's trade and economy. The exports and imports nearly halved between 1928 to 1934.
2) Agricultural prices fall sharply, but the British government did not reduce the revenues.
3) Raw jute was produced, processed in the industries to make gunny bags. Its exports also collapsed and prices fall by nearly 60 percent. Due to this peasants of Bengal suffered the most.
4) The British government adopted a protective trade policy, which was beneficial to the United Kingdom but that caused great damage to the Indian economy due to the great depression.

Answer 2

The great depression occurred in 1929 continued for six subsequent years. It had severe impact on the total economy and lives of Indian rural people.

1. Due to availability of funds the purchasers reduced purchasing goods from India.  So Indian exports fell badly by 40% to 50%.

2. Prices of wheat for example fell by 50%.  Because of reduction of prices and exports, the income of the farmers and the small traders reduced drastically. But they had to pay taxes etc. to the British govt. as usual.  The people involved in agriculture had to sell of their belongings, lands and jewellery.

3. The British retained policies favourable to Britain. And deprived India of good protection for the people. The Indian railways, Sea-trade (shipping) and obviously the agricultural sector were affected.