Question

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

Answer 1

The impact of the Great Depression in India was felt especially in the agricultural sector.It was evident that Indian economy was closely becoming integrated to global economy. India was a British colony and exported agricultural goods and imported manufactured goods. The fall in agricultural price led to reduction of farmers’ income and agricultural export. The government did not decrease their taxes and so, many farmers and landlords became more indebted to moneylenders and corrupt officials. It led to a great rural unrest in India.