Question 3) Write a note to explain the effects of the following: (d) The Great Depression on the Indian economy.

Question 3) Write a note to explain the effects of the following: (d) The Great Depression on the Indian economy.- Hosting Precise

Posted on 11th Sep 2021 04:05:00 in

Question 3) Write a note to explain the effects of the following: (d) The Great Depression on the Indian economy.

Ans:

The Depression affected the Indian economy as well. Between 1928 and 1934, the imports and exports of India became nearly half. During this period, the wheat prices in India fell by 50%. In spite of falling prices of farm produce, the government continued to demand the same revenue from the farmers. Thus, farmers were the worst sufferers in this situation.

Many farmers were forced to utilize their savings, sell their lands and jewelry. Thus, India became a net exporter of precious metal during this period. The depression proved less grim for the urban dwellers in India.

With falling prices, many urban landowners and salaried people found the life much easier. Under pressure from the nationalist leaders, the industrial protection grew which led to more investment in the industries.

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