Question

Discuss the difference in Government intervention in the economy that has been brought forward as a result of the Great Depression to today. Use specific examples and write a summary of your findings.

Answer 1

The answer for this question is as follows:

First let me discuss what is Government intervention is; Government intervention is any action carried out by the government or public entity that affects the market economy with the direct objective of having an impact in the economy, beyond the mere regulation of contracts and provision of public goods.

The great depression of 1929 had a severe impact on india,which was then under the rule of British Raj. How much india was affected has been hostly debated. nationalist historians have argued that the great depression slowed long term industrial development. outside scholars argued that depression had only a small impact in india's modern secondary sector: in terms of output, there was no depression in india between 1929 and 1934.however there were negative impacts on the jute industry, as world demand fell and prices plunged. local markets in agriculture and small scale industry showed modest gains. the government of british india adopted a protective trade policy which though beneficial to the united kingdom, caused great damage to the indian economy.During the period 1929-1937, exports and imports fell drastically crippling seaborne international trade. the railways and the agricultural sector were the most affected.

The salt satyagraha of 1930 was one of the measures undertaken as a response to heavy taxation during the great depression.

The great depression and the economic policies of the government of british india worsened already deteriorating indo british relations.

in the beginning of 2000 indias economy has grown at its slowest past. in the past financial year april 2018 to march 2019 the economy grew by 6.8 % and in the quarter between january and march it expanded by just 5.8% falling behind china 's pace for the first time in nearly 2 years.this means india is no longer the worlds fastest growing economy and it will be a challenge for the new finance minister, Nirmala Sidharaman, only the second women to hold the post after former PM Indira Gandhi. Ms.Sitharaman has headed important ministries like commerce and defence during Mr. Narendra modi's first ruling period