Which of the following incidents in the 1860s was responsible for an upsurge of demand for Indian cotton, grown primarily in the Deccan?
Answer & explanation
Correct answer: option 3
The correct answer is Option 3 -American Civil War
When the American Civil War started in 1861 cotton from the American South stopped coming into the international market. This led to an upsurge of demand for Indian cotton, grown primarily in the Deccan. Once again Indian merchants and middlemen found an opportunity for earning huge profits. In 1869 the Suez Canal was opened and this further strengthened Bombay's links with the world economy.