Explain any three effects of the Non-cooperation Movement on the economy of India. (CBSE 2011)

Three effects of Non-cooperation on the economy:

1. The import of foreign cloth became half by 1922 because its demand had drastically fallen.

2. Merchants and traders refused to handle foreign goods or finance in many places.

3. Indian textile mills’ and handlooms’ demand grew as Indian clothes were now in huge demand.

Explanation: The non-cooperation movement was mainly against whatever symbolizing British rule. It gave a big push to Indian manufacturers.