The Great Depression sharply reduced global demand, causing Indian agricultural prices to crash. Farmers faced falling incomes, rising debt and forced exports. Urban workers lost jobs, while poverty deepened. Social unrest increased as economic hardship affected communities across colonial India.
“The Great Depression of 1929 mid 1930s several affected economies across the world, including colonial India”. Highlight its major effects on India’s economy and society.
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The Great Depression of 1929 to the mid-1930s had a serious impact on colonial India’s economy and society in several ways:
Collapse of Trade: India’s exports and imports dropped by nearly half between 1928 and 1934 as global demand declined sharply.
Falling Agricultural Prices: The prices of farm goods crashed—wheat values fell by almost 50% and raw jute by more than 60%—causing great hardship for farmers.
Peasant Suffering: Despite the crisis, revenue demands stayed the same, pushing peasants into debt. Many mortgaged their land or sold jewellery and valuables to survive.
Gold Exports: India became a key exporter of gold, which helped Britain recover but gave little benefit to Indian farmers.
Urban Effects: While rural areas faced poverty, some city residents with fixed incomes gained from lower prices and a few industries expanded under tariff protection.