Write a note to explain the effects of the following: The Great Depression on the Indian economy.

The effects of the Great Depression on the Indian economy were as given below:
(i) The depression affected Indian trade badly. The exports and imports decreased to half between 1928 and 1934.
(ii) Prices in India fell sharply. For example, between 1928 and 1934, wheat prices felt by 50 per cent.
(iii) Inspite of fall in agricultural prices, the government, did not reduce the land revenue. Peasants producing for the world market were the worst hit e.g., the collapse of gunny exports Ied to crash in price of raw jute to more than 60 per cent.
(iv) In general peasants’ indebtedness increased. They used their savings, mortgaged lands and sold their jewelry and precious metals to meet their expenses.
(v) India, however, became exporter of gold. The famous economist John Maynard Keynes thought that Indian gold exports promoted global economic recovery.
(vi) In urban India, the condition of people was, however, better because prices had fallen and they with their fixed incomes could purchase more. Industrial investment also increased due to tariff protection to industries under the pressure of the nationalists.
Thus, the Great Depression had affected adversely the rural economy but it was less harmful for urban India.

for more answers vist to:
https://www.tiwariacademy.com/ncert-solutions/class-10/social-science/history/chapter-1/