Question

What was the effect of the Great Economic Depression on India after the First World War?

Hint:

The Great Depression in India led to economic hardship and political awakening, influencing the struggle for independence.

Answer 1

The Great Economic Depression of 1929 had significant adverse effects on India’s economy, which was largely agrarian and dependent on exports.
1. Fall in Export Demand:
- The global economic downturn led to a sharp decline in demand for Indian goods like jute, cotton, tea, and coffee. - Prices of these commodities fell drastically, reducing the income of farmers and producers.
2. Agricultural Distress:
- Many farmers faced crop failures and could not repay loans. - Rural indebtedness increased, leading to widespread poverty and distress in villages.
3. Industrial Slowdown:
- The decline in purchasing power resulted in reduced demand for industrial goods. - Many industries faced closure or reduced production, leading to unemployment.
4. Unemployment and Poverty:
- The economic crisis led to a rise in unemployment in both rural and urban areas. - Poverty deepened, worsening the living conditions of millions of Indians.
5. Political Impact:
- The economic hardships strengthened the Indian freedom movement. - Leaders used the crisis to highlight the failure of British economic policies and rally public support for independence.
Conclusion:
The Great Depression exposed the vulnerabilities of the colonial Indian economy, accentuating social and economic problems that fueled the demand for self-rule.