INSIGHT UPSC QUIZ

GS History Modern India
Q.

In the early 1860s, there was a sudden increase in access to credit for ryots in the Deccan villages. Which among the following was the reason for this?

Explanation:
  • American civil war broke out in 1861. Raw cotton imports from America fell drastically and Britain sent messages to increase cotton exports from India. As cotton prices soared, the merchants gave advances to urban sahukars to secure supply which in turn extended credit to those rural moneylenders who promised to secure the produce. The ryots in the Deccan villages suddenly found access to seemingly limitless credit. However this credit dried with the end of American civil war in 1865.

Thus, Option C is Correct.

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