Question

You are asked to prepare a report on how the end of the American Civil War affected the cotton boom in the Indian Deccan. How would you assess the changes? Explain.

Hint:

The end of the American Civil War significantly impacted the cotton economy in India, highlighting the global nature of agricultural trade.

Answer 1

The end of the American Civil War in 1865 had significant consequences on global cotton trade, particularly in the Indian Deccan region. The war had disrupted cotton production in the southern United States, which had been a major supplier of cotton to global markets. With the end of the war, cotton production in the U.S. resumed, leading to a fall in cotton prices worldwide.
1. Impact on the Indian Cotton Boom: During the Civil War, India had stepped in as a major supplier of cotton to European industries, and the Indian cotton boom saw a rise in cotton cultivation, especially in the Deccan region. The end of the war, however, caused a drop in demand for Indian cotton as the U.S. regained its position in the global market.
2. Economic Consequences: The reduced demand for Indian cotton led to a slowdown in agricultural output and negatively affected the economy of cotton-growing regions in India. The decrease in global cotton prices also hurt local farmers who had been relying on the booming cotton trade.
In conclusion, the end of the American Civil War marked the decline of the cotton boom in India, particularly in the Deccan, as global demand shifted back to U.S. cotton.