describe the impact of great depression on indian economy
Answers
The Great Depression on Indian economy occurred during 1929. This had a very strong impact when India was under the British Raj rule.
India was a great exporter of wheat to the European countries. When the International prices of wheat came down, prices of wheat in India was also affected as the prices fell down by 50%.
Peasants and farmers were the most affected.
The economy depression immediately affected Indian Trade, as India’s exports
andimports nearly halved between 1928-1934
2. Agriculture prices fell sharply, but the colonial government refused to reduce
revenues.Peasants producing for the world markets were worst hit.
3. Raw jute was produced, processed in the industries to make gunny bags. Its
exportscollapsed and prices fell by 60% peasants of Bengal fell into debt traps.
4. Peasants used up their savings mortgaged lands and
soldtheirpreciousjewelrytomet
their expanses.