Q. With reference to the ‘Cotton boom’ that occured in 19th century India,which of the following statements is/are correct?
Select the correct answer using the code given below.
Q. With reference to the ‘Cotton boom’ that occured in 19th century India,which of the following statements is/are correct?
Select the correct answer using the code given below.
The correct option is D
1, 2 and 3
Explanation:
The Cotton boom was marked by a rapid increase in the area and production of cotton in India in the mid-19th century. It was triggered by the American Civil War.The American Civil War broke out in 1861, and a wave of panic spread across British cotton circles. Imports of raw cotton from America fell to less than 3% of normal. Frantic messages were sent to India and elsewhere to increase the export of cotton to Britain. In Bombay, cotton traders visited the cotton districts to assess supplies and encourage cultivation. As cotton prices soared, export traders in Bombay were eager to secure as much cotton as possible to meet British demand.So they gave advances to urban Sahukars who, in turn, extended credit to those rural money lenders who promised to secure the goods. When market credit flows are booming easily, those who give out loans feel secure about recovering their money.
These developments have had a profound impact on the Deccan countryside. Ryots in the Deccan villages suddenly found access to seemingly unlimited credit. Sahukars were more than willing to extend long-term loans. While the US crisis continued, the production of cotton in the Bombay Deccan expanded. Between 1860 and 1864, the cotton area doubled. By 1862, more than 90% of the cotton imports into Britain had come from India.
1, 2 and 3
Explanation:
The Cotton boom was marked by a rapid increase in the area and production of cotton in India in the mid-19th century. It was triggered by the American Civil War.The American Civil War broke out in 1861, and a wave of panic spread across British cotton circles. Imports of raw cotton from America fell to less than 3% of normal. Frantic messages were sent to India and elsewhere to increase the export of cotton to Britain. In Bombay, cotton traders visited the cotton districts to assess supplies and encourage cultivation. As cotton prices soared, export traders in Bombay were eager to secure as much cotton as possible to meet British demand.So they gave advances to urban Sahukars who, in turn, extended credit to those rural money lenders who promised to secure the goods. When market credit flows are booming easily, those who give out loans feel secure about recovering their money.
These developments have had a profound impact on the Deccan countryside. Ryots in the Deccan villages suddenly found access to seemingly unlimited credit. Sahukars were more than willing to extend long-term loans. While the US crisis continued, the production of cotton in the Bombay Deccan expanded. Between 1860 and 1864, the cotton area doubled. By 1862, more than 90% of the cotton imports into Britain had come from India.
