Why did prices in India plunge during the great economic depression
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Great depression of 1930s had affects on India In Very Poor Way--
In the nineteenth century, colonial India had become an exporter of agricultural goods and importer of manufactures. The great depression immediately affected Indian trade.
India's exports and imports nearly halved between 1928 and 1934.As international prices crashed, prices in India also plunged. Between 1928 and 1934, wheat prices in India fell by 50 per cent.Peasants and farmers suffered more than urban dwellers. Though agricultural prices fell sharply, the colonial government refused to reduce revenue demands. Peasants producing for the world market were the worst hit. Across India, peasants' indebtedness increased. However, the depression proved less grim for urban India.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.
Later, 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.
Hope Helps☺☺
Great depression of 1930s had affects on India In Very Poor Way--
In the nineteenth century, colonial India had become an exporter of agricultural goods and importer of manufactures. The great depression immediately affected Indian trade.
India's exports and imports nearly halved between 1928 and 1934.As international prices crashed, prices in India also plunged. Between 1928 and 1934, wheat prices in India fell by 50 per cent.Peasants and farmers suffered more than urban dwellers. Though agricultural prices fell sharply, the colonial government refused to reduce revenue demands. Peasants producing for the world market were the worst hit. Across India, peasants' indebtedness increased. However, the depression proved less grim for urban India.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.
Later, 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.
Hope Helps☺☺
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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.
(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.
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