Explain the effects of worldwide economic depression in India towards late 1920s
Answers
Answer:
The effects of worldwide depression on India were as follows :
(i) India's trade was affected. exports decreased as international prices crashed.
(ii) Agricultural prices fell due to which farmers could not sell their produce and the British government
continued to take high taxes.
(iii) The economic instability and colonial rule provided an opportunity to Mahatma Gandhi to launch the
Civil Disobedience Movement in 1930.
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(i) The depression immediately affected Indian trade. India’s exports and imports nearly halved between 1928 and 1934. As international prices crashed, prices in India plunged. Between 1928 and 1934, wheat prices in India fell by 50 per cent.
(ii) The fall in prices had a deep impact on the poor farmers. Though agricultural prices fell sharply but the colonial government refused to give any relief to the farmers in taxes. Peasants producing for the world market were the worst hit
•Their indebtedness increased.
•They were forced to sell or mortgage their land.
•People were forced to sell their assets like T gold and silver.
•Indian jute producers were worst affected.
(iii) The unrest created by the Great Depression provided an opportunity to Mahatma Gandhi to launch the Civil Disobedience Movement in 1931.
(iv) The depression proved less grim for urban India. Because of falling prices those with fixed income-like town-dwelling landowners who received rents and middle-class salaried employees-now found themselves better off. Everything cost less. Industrial investment also grew as the government extended tariff protection to industries, under the pressure of nationalist opinion.