Roadmap for Answer Writing:

1. Introduction

• Contextualize the question: Briefly mention the period during which the Great Depression took place (1929-1934) and its significance on the global economy.
• Define the question: Emphasize how a mix of economic factors triggered the crisis and its rapid spread across different regions, including India.

2. Causes of the Great Depression

• Stock Market Crash of 1929: Explain the role of the stock market crash in the U.S., caused by speculative investments and lack of regulation, which triggered a global economic collapse.
  Source Fact: “The stock market crash of 1929 on the New York Stock Exchange was a major factor, driven by unchecked speculation and poor market regulation.”
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• Banking Panic and Monetary Contraction: Mention how the withdrawal of U.S. loans created economic instability in Europe and other regions.
  Source Fact: “The withdrawal of U.S. loans caused banking panics in Europe and the collapse of major currencies, including the British pound sterling.”
  (Source: Provided Content)
• Agricultural Overproduction and Low Demand: Explain how overproduction of goods, especially in agriculture, led to falling prices and lower incomes, worsening the economic crisis.
  Source Fact: “Agricultural overproduction led to a glut in the market, pushing prices down further, which worsened the income crisis for farmers.”
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• Decreased International Lending and Tariffs: Discuss the role of U.S. banks reducing lending to foreign countries and the imposition of tariffs that led to global trade contraction.
  Source Fact: “In the late 1920s, U.S. banks reduced international lending, particularly impacting countries like Germany, Argentina, and Brazil.”
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3. Spread of the Great Depression to Other Parts of the World

• Global Economic Interconnectedness: Explain how economic troubles in one part of the world (such as the U.S.) quickly spread to other regions, owing to international trade and financial connections.Source Fact: “The economic crisis in the U.S. spread rapidly to other regions, including Europe and Asia, due to interconnected trade and financial systems.”
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• Impact on India: Discuss how the Great Depression specifically affected India, detailing the decline in trade, agricultural prices, and rising debt among peasants.Trade: “India’s exports and imports nearly halved between 1928 and 1934, causing a severe reduction in economic activity.”
  (Source: Provided Content)Impact on Peasants: “Peasants were the most affected, facing falling agricultural prices while the colonial government refused to reduce revenue demands, leading to increased debt.”
  (Source: Provided Content)Urban India: “Urban India experienced relatively less hardship, as falling prices allowed those with fixed incomes, such as salaried employees and landowners, to benefit.”
  (Source: Provided Content)

4. Global Recovery Efforts

• Measures Taken by Countries: Discuss the global responses to the crisis, focusing on how countries like the U.S. abandoned the gold standard and devalued currencies to recover.Source Fact: “Countries abandoned the gold standard, devalued currencies, and increased money supply to help recover from the depression.”
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• U.S. Recovery Programs: Mention the U.S. New Deal programs, including fiscal expansion, welfare programs, and defense spending during World War II, which contributed to the economic recovery.Source Fact: “The New Deal programs, including job creation and social welfare programs, played a key role in the recovery of the U.S. economy.”
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5. Conclusion

• Summarize the key points: Reiterate the causes of the Great Depression and how it spread globally, emphasizing its impact on India.
• Link to the global interconnectedness: Conclude by mentioning how the depression was a global event, showing the interconnectedness of world economies in the 20th century.

Example: “In conclusion, the Great Depression was a complex event triggered by multiple factors, and its effects spread rapidly across the globe. While countries like the U.S. experienced severe economic turmoil, regions such as India also felt the crisis through a collapse in trade and agriculture, highlighting the interconnectedness of the global economy.”