7. The impact of war on Britsh rule and Indian nationalism Flashcards
How had the war time economy affected Britain’s ability to maintain the Raj from 1942-45?
- the economy had been geared up to wartime production.
- financial reserves were running down fast.
- this has intensified pre-existing trends with the rule over India.
What happened to British investment in India during the 1930’s?
- it had fallen significantly.
* Indian capitalists and entrepreneurs were taking the lead in investing in their own country.
What was happening to Indian imports from Britain?
- India were importing less from Britain.
- 1928-29- Indians spent £83 million on imports from Britain.
- 1935-36- they were spending just £39 million.
- Indian governments were increasing tariffs on imported food to encourage domestic markets.
- Lancashire cotton exports to India collapsed- India could produce their own cotton cheaper.
- Japanese competition with lower prices further squeezed British goods out of the Indian market.
- the Indian economy was becoming more buoyant, creating an export crisis for Britain.
What did the establishment of the Reserve Bank of India in 1931 mean for the rupee?
• India could set value of its own currency with out reference to sterling in world money markets.
What changed in 1933 and 39 about the running of the Indian army?
How did both sides benefit from this?
- 1933- Britain began paying 1.5 million per year towards the running costs of the Indian army.
- 1939- the British government agreed to pay for an army modernisation programme.
- this helped the allied cause in the war.
- it gave the Indian army a sense of competence and self worth.
Why did Britain covering most of the costs of the Indian troops in Japan, North Africa and Italy boost the Indian economy?
- by 1945, the Indian government had managed to build up a sterling balance in the Reserve bank of India of £1300 million.
- this allowed Indians to provided capital for Indian based enterprises and initiatives, that had the capacity to boost national pride.
Why was the British economy in a desperate situation by 1945?
- they had to shift production focus from wartime to peacetime demands.
- war time debts we’re running towards £70 million per day towards the end of the war.
- 1945- Britain owed £2,730 million, mainly to the USA.
- Britain had to embark on an enormous programme of reconstruction of public services and factories during the war.
How did the strength of the nationalist movement worsen the Raj’s situation?
• it was becoming increasingly unrealistic to maintain rule within India with this on top of the wartime situation.
