Question:

Evaluate the economic consequences of the Non-Cooperation Movement for colonial rule in India.

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Think of boycott, fall in import of foreign cloth, the role of traders and the rise of khadi.
Updated On: Nov 3, 2026
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Solution and Explanation

Step 1: Understand the aim of the movement:
The Non-Cooperation Movement (1920-22) asked Indians to stop co-operating with the British government. It had political, social and economic parts. Here we look only at its economic effect on colonial rule.

Step 2: Boycott of foreign goods:
The effects of non-cooperation on the economic front were more dramatic. Foreign goods were boycotted, liquor shops were picketed and foreign cloth was burnt in huge bonfires.
Since colonial rule gained a lot from selling British goods in India, this hit the colonial economy.

Step 3: Fall in imports:
The import of foreign cloth halved between 1921 and 1922. Its value fell from Rs 102 crore to Rs 57 crore. This was a heavy loss for British traders and mills.

Step 4: Role of merchants and traders:
In many places merchants and traders refused to trade in foreign goods or to finance foreign trade. Without the Indian trading network, the foreign cloth trade was badly affected.

Step 5: Change in the habits of people:
As the boycott spread, people began to discard imported clothes and wear only Indian ones.

Step 6: Gain for Indian industry:
The production of Indian textile mills and handlooms went up. The making and wearing of khadi became very popular.
This shows that the movement weakened the colonial economic hold and helped swadeshi industry.

Final Answer:
The movement cut the sale of foreign goods, halved imports of foreign cloth, and boosted Indian mills, handlooms and khadi, so it hurt the economic base of colonial rule. \[\boxed{\text{Boycott hit colonial trade and helped Indian industry}}\]
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