How was India affected by the Great Depression of 1929? Explain.

(i) The depression immediately affected Indian trade.

(ii) India’s exports and imports nearly halved between $\displaystyle 1928$ and 1934.

(iii) As international prices crashed,prices in India also plunged.(Between $\displaystyle 1928$ and $\displaystyle 1934$, wheat prices in India fell by $\displaystyle 50$ percent.)

(iv) Peasants and farmers suffered more than urban dwellers.

(v) Agricultural prices fell sharply, the colonialthe government refused to reduce the revenue demand.

(vi) Peasants producing for the world market were the worst hit.

(vii) The depression proved less grim for urban India.

(viii) Due to falling prices, those with fixed incomes now found themselves better off.