Effects of Great Depression on Indian Economy
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Answer:
Effects of the Great Depression on the Indian Economy:
The depression had immediate effect on Indian trade, India's exports and imports halved between 1928 and 1934. The prices fell in India as a result of the international price crisis. Wheat prices fell by 50 per cent between 1928 and 1934.
Explanation:
Answer:
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 Great Depression of 1929 had a very severe impact on India, which was then under the rule of the British Raj.
The Government of British India adopted a protective trade policy which, though beneficial to the United Kingdom, caused great damage to the Indian economy.
During the period 1929–1937, exports and imports fell drastically crippling seaborne international trade. The railways and the agricultural sector were the most affected.
The international financial crisis combined with detrimental policies adopted by the Government of India resulted in the soaring prices of commodities.
High prices along with the stringent taxes prevalent in British India had a dreadful impact on the common man.
The discontent of farmers manifested itself in rebellions and riots.
The Salt Satyagraha of 1930 was one of the measures undertaken as a response to heavy taxation during the Great Depression.
The Great Depression and the economic policies of the Government of British India worsened the already deteriorating Indo-British relations. When the first general elections were held according to the Government of India Act 1935, anti-British feelings resulted in the Indian National Congress winning in most provinces with a very high percentage of the vote share.
Explanation: