1. India’s Connection to the Global Economy 🌍🔗

• The Great Depression showed how connected the global economy was. 🔄🌎

  • Economic problems in one part of the world quickly spread to other regions. 🌍💥
  • India, being part of the British Empire, was deeply linked to global trade. 🇮🇳⚖️

• India’s economic structure was shaped by colonial rule. 🏛️📜

  • By the 19th century, India became an exporter of raw materials like wheat, jute, and cotton. 🚜📦
  • At the same time, India imported finished goods from Britain and other countries. 🏭🛍️

2. Impact on Indian Trade 📉🚢

• The Great Depression hit Indian trade severely. 💔📊

  • Between 1928 and 1934, both exports and imports fell by 50%. 📦📉
  • Indian products like jute, cotton, and wheat were no longer in high demand. 🚜💵

• International price crashes affected Indian markets. ⚠️💰

  • As global demand decreased, Indian prices also dropped. 🌍📉
  • Wheat prices in India fell by 50%, leading to huge losses for farmers. 🌾💸

• Farmers and traders faced difficulties. 🚜🏚️

  • Farmers could not sell their crops at good prices, leading to financial struggles. 💰❌
  • Many small traders and businesses also suffered because of lower demand. 🏪📉

3. Effect on Peasants and Farmers 🚜💰

• Peasants suffered more than city dwellers. 🏡💸

  • Urban middle-class people benefited from lower prices, but farmers faced heavy losses. 🏙️💰🔻

• The colonial government refused to lower taxes despite falling crop prices. ⚖️❌

  • Farmers had to pay high revenue even when their income had dropped. 💵🚫

• Farmers who relied on global markets were the worst affected. 🌍📉

  • They produced crops for export, but when global demand collapsed, prices crashed. 📊💔

• Bengal’s jute growers suffered immensely. 🚜📉

  • Raw jute prices fell by 60%, making it hard for farmers to repay loans. 💔💰
  • They had borrowed money expecting higher incomes, but now they were buried in debt. 💵🔄💸

4. Peasants’ Debt and Gold Exports 💰⚖️

• To survive, many peasants sold their land, used savings, or pawned jewelry. 🏡💎🔻

  • They had no other options as prices kept falling. 📉💰

• India became a major gold exporter during the Depression. 🏆📦

  • People sold gold to meet daily expenses, leading to increased gold exports. 💍🚢

• John Maynard Keynes believed India’s gold exports helped the global economy recover. 🏛️⚖️

  • However, Indian peasants gained nothing from it and continued to suffer. 💔💰

5. Rural Unrest and Civil Disobedience ✊🔥

• Widespread poverty and debt led to anger and protests in rural India. 😡⚠️

  • Farmers were losing land and wealth, increasing frustration. 🚜💸

• The economic crisis fueled nationalist movements. 🚩💬

  • Many saw British policies as the cause of their suffering. 🇬🇧⚖️💔

• In 1931, at the peak of the Depression, Mahatma Gandhi launched the Civil Disobedience Movement. ✊🇮🇳

  • Farmers and workers actively participated, demanding freedom and relief from taxation. 🙌📢

6. Impact on Urban India and Industries 🏙️🏭

• Urban areas suffered less compared to villages. 🏙️📉

  • City dwellers with fixed incomes (e.g., landlords, government employees) benefited from falling prices. 🏡💰

• Industrial investment increased due to tariff protection. 🏭📈

  • Nationalist leaders pressured the British government to protect Indian industries. 📢⚙️
  • Higher tariffs reduced foreign competition, allowing Indian industries to grow. 🚀📊