India and the Great Depression
The Great Depression of 1929 had far-reaching effects on the global economy, and its impact on India offers a poignant example of this interconnectivity. As global trade faltered, India's economy witnessed a dramatic drop, with both exports and imports nearly halving between 1928 and 1934. The fall in international prices led to a significant reduction in wheat prices—by 50%—and hit agricultural producers the hardest, particularly those like jute farmers in Bengal.
Despite falling agricultural prices, the colonial government maintained its revenue demands, straining the finances of farmers who were already spiraling into debt due to low prices. The phrase from Bengal's jute growers encapsulates their plight, illustrating a cycle of hope dashed by the harsh realities of market forces. In contrast, urban India's fixed-income groups experienced an improvement in their living standards, as decreasing prices benefited landowners and salaried workers. Industrial investments also increased during this period as the government responded to nationalist pressures and extended tariff protections. The complexity of the Great Depression in India thus reveals stark divides between rural despair and urban stability, setting the stage for social unrest and political mobilization led by figures like Mahatma Gandhi.