How Did the Great Depression of 1929 Affect the Farmers and the Middle Classes in India in Different Ways?

The great depression of US also affected India severely. The exports and imports fell down almost by 50%.

The peasants who were producing for the world market were hit hard than the urban dwellers because of the sharp decline in the price of the agricultural products in the international market and also the colonial government refused to reduce the revenue.

The jute producers of Bengal fell into debt due to the collapse of the gunny exports and decline in the price of the raw jute. To come out of the situation of indebtedness, Indian peasants used their savings, mortgaged lands and sold their jewellery and precious metals.

During this depression period, India became an important exporter of Gold which helped Britain to speed up its recovery and also helped in promoting the global economic recovery.

The urban India people were not much affected as their income was fixed. Either they were dependent on rental income or they were salaried employees.