Social Studies VSQ (2 Marks)

The Great Depression had a major impact on the Indian economy as:
i. The depression immediately affected Indian trade. India's exports and imports nearly halved between 1928 and 1934. As international prices crashed, prices in India plunged. Between 1928 and 1934, it reduced Indian imports and exports by nearly half.
ii. The fall in prices had a deep impact on poor farmers. Though agricultural prices fell sharply, the colonial government refused to give any relief to the farmers in taxes. Peasants producing for the world market were the worst hit.
iii. The depression proved less grim for urban India. Because of falling prices those with fixed incomes - say town-dwelling landowners, who received rents and middle-class salaried employees found themselves better off.

The areas irrigated by the new canals built by the British were called the Canal Colonies. These were introduced in the region of west Punjab. Peasants from the other parts of Punjab settled around these canals.
The British government built these new canals for the following reasons:
a. The British wanted to transform semi-desert wastelands into fertile agricultural land.
b. The Britishers wanted to export wheat and cotton. So people from other parts of Punjab were called and settled to grow wheat and cotton here.