Impact of great depression on indian …

The impact of the great depression on india shows the global nature of the economy. Indian export and import halved between 1928-34.The impact of falling prices also affected the wheat prices in india.The worst affected were the peasants and farmers becoz the colonial government refused to reduce the demand for revenue despite the fall in agricultural prices.E.G jute industry...

Effects of the Great Depression on the 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.
(v)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.