In Western India, there was a boom in the cotton cultivation in 1860s, leading to creation of a pocket of prosperity in the Deccan cotton belt. Which among the following was the event that caused this boom suddenly in India?

Answer: [B] Increased demand induced by American Civil War

The outbreak of the American War ameliorated the problems of demand.  Prices of western Indian cotton shot up from an average of Rs. 128 per candy in 1860 to Rs. 314 in 1863 and a peak of Rs.. 627 in 1865.14 and the extent of land under cotton cultivation increased substantially throughout western India.

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