Question

What was the effect of great depression in indian economy?

Answer 1

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❏The depression affected the rural peasants and farmers more than the urban sector. Agricultural prices began to fall from 1926 and declined sharply after the 1930s.

❏As the demand for agricultural goods fell in the domestic and international market, exports declined and there was a persistent glut of commodities

Answer 2

Explanation ♡

★ Impact on trade :

★ 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 about 50 per cent.

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