The Great Depression and its Impact on India
The Great
Depression was a severe and prolonged economic crisis which lasted for about a
decade from 1929. The slowdown of the economic activities, especially
industrial production, led to crises like lockouts, wage cut, unemployment and
starvation. It began in North America and affected Europe and all the
industrial centres in the world. As the world was integrated by the colonial order
in its economic sphere, developments in one part of the world affected other
parts as well.
The crash
in the Wall Street (where the American Stock Exchange was located) triggered an
economic depression of great magnitude. The Depression hit India too. British
colonialism aggravated the situation in India. Depression affected both
industrial and agrarian sectors. Labour unrest broke out in industrial centres
such as Bombay, Calcutta, Kanpur, United Province and Madras against wage cuts,
lay-offs and for the betterment of living conditions. In the agriculture
sector, prices of the agricultural products, which depended on export markets
like jute and raw cotton fell steeply. The depression brought down the value of
Indian exports from Rs. 311 crores in 1929–1930 to Rs 132 crores in 1932–33.
Therefore, the 1930s witnessed the emergence of the Kisan Sabhas which fought
for rent reduction, relief from debt traps and even for the abolition of
Zamindari.
The only
positive impact was on the Indian industrial sector that could use the
availability of land at reduced prices and labour at cheap wage rates. The
weakening ties with Britain and other capitalist countries created a condition
where growth was recorded in some of the Indian industries. Yet only the industries
which fed the local consumption thrived.
Related Topics
Privacy Policy, Terms and Conditions, DMCA Policy and Compliant
Copyright © 2018-2024 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.