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How Did The American Civil War Affect Indian Economy

377 Words2 Pages
There were many effects that the American Civil war had on India. During the war, it helped greatly with the economy. India started exporting cotton heavily to the British due to the lack of importation from America. The Deccan soil was the sufficient in growing cotton and the farmers with this soil rapidly started gaining business. However, because not all farmers produced this soil, it became frustrating to the farmers that did not produce it. Food shortages started to form because most of the farmers started to use their land for cash crop only and stopped using it for food crop. Since India was flourishing greatly growing cotton in the fertile land and selling cotton, money lenders were using this opportunity to gain business as well.
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