Great Depression on Indian economy

 (i) The depression immediately affected Indian trade. India’s exports and imports recorded nearly halved between 1928 and 1934. As international prices crashed, prices in India were also plunged. Between 1928 and 1934, wheat prices in India fell by 50 per cent.
(ii)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.
(iii)Across India, peasants’ indebtedness increased. They used up their savings, mortgaged lands, and sold whatever jewellery and precious metals they had to meet their expenses.
(iv)In these depression years, India became an exporter of precious metals, notably gold. The famous economist John Maynard Keynes thought that Indian gold exports promoted global economic recovery.