Question

Describe the impact of Great Depression of on Indian economy

Answer 1

▪ Impact on trade:

The great depression immediately affected the Indian trade.

▪ Impact on farmers:

The fall on prices had a deep impact on the poor farmers.

▪ Impact on urban Indian:

The depression proved less grim for urban Indians

Answer 2

India’s exports and imports nearly halved between 1928 and1934.

As agricultural prices fell sharply internationally as a result of this prices plunged in India.

Despite of this, the colonial government refused to reduce revenue demands.

Peasants’ indebtedness increased. They used up their savings, mortgaged lands and sold their jewellery and precious metals.

India became exporter of metal

Town dwellers found themselves better off

Industrial investment grew