CBSE Class 10 Answered

The Great Depression was one of the worst economic crisis that began in 1929 and lasted almost till i1939. It was experienced by western industrialised nations. Though the economic crisis originated in the United States, it affected the economy of almost every country in the world. Unemployment, poverty decline in industrial outputs were some of the effects of the Economic Depression of 1929.

The Great Depression – Impact on India

• Indian trade was hit hard by the Great Depression. India’s exports and imports were halved. The prices of food grains decreased, but the Government refused to decrease the taxes.
• Peasants who produced commodities for the world market such as cotton and jute suffered great losses. Rural indebtedness increased, and many farmers lost their lands.
• The depression did not impact urban Indians much. Decrease in the prices of food grains benefited fixed salaried employees. Investments in industries also grew as the Government protected the industries by imposing tariffs under the mounting pressure of the nationalists in India.