Why did the war in America lead to increase in prices of cotton in India?
Answers
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India exports most of the Cotton to America.
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The war in America lead to increase in cotton prices in India because there was a high demand for cotton in international market at that time and mist of cotton went from the Indian subcontinent.
Explanation:
- Cotton was one of most crucial exported items of world because of it’s high demand in markets of Europe. Most of the cotton in earlier times came from tropical countries like India, Pakistan, etc.
- But, after colonization of North America, especially southern part of America, large number of cotton plantations were set up there. It was supported by slave trade because a large number of slaves were made to be involved in these plantations.
- But, when Civil War started in America, the cotton plantations in the south were disrupted and slaves also refused to work on it. As a result of which there was a shortage of cotton in European markets.
- To fulfill demands cotton was brought from India but at higher prices due to high demand. This led to increase in prices of cotton in India during Civil War in America.
To learn more about the war:
What must major efforts be today in the context of war
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