Question

How did the global economic depression impact India during the late 1920s?

• A. Agricultural prices started to fall.
• B. Exports increased.
• C. Peasants were not able to sell their harvests.
• D. Peasants were not able to pay land revenue.

Answer 1

Answer: (A), (C), (D)

Peasants were not able to pay land revenue.

During the late 1920s, the world went through an economic depression. Due to the extensive trade practices, India was well connected with the rest of the world. Hence, the depression had an impact on India as well. From 1926, agricultural prices started to fall, resulting in the decline of the exports, and the demand for agricultural goods fell. The peasants found it extremely difficult to sell their harvests and pay their revenue.