The non-cooperation movement started with the participation of middle-class people in the cities in the following manner:-

a) The middle class in cities began participation in noncooperation movement.

b) Headmasters, teachers and thousands of students left schools

c) Lawyers gave up their professions.

The economic impact was that every foreign good was boycotted and the production of Indian textile boosted.

The import of foreign goods declined"

Introduction:
The non-cooperation movement was a significant phase of the Indian independence movement led by Mahatma Gandhi in the early 1920s. It aimed to protest against British colonial rule and secure India's freedom through nonviolent means. The movement began in response to the Jallianwala Bagh massacre and other repressive measures imposed by the British government. The non-cooperation movement had a profound impact on the Indian economy, leading to both positive and negative consequences.

Political and Social Factors:
1. Jallianwala Bagh massacre: The brutal massacre in Amritsar in 1919, where British troops fired upon a peaceful gathering, caused widespread outrage and became a catalyst for the non-cooperation movement.
2. Khilafat Movement: The Indian Muslim community's support for the Khilafat Movement, which aimed to protect the Ottoman Caliphate, provided a broader political context for the non-cooperation movement.

Launch of the Non-Cooperation Movement:
1. The non-cooperation movement was officially launched in 1920 at the Nagpur session of the Indian National Congress.
2. Mahatma Gandhi called for the boycott of British institutions, including schools, offices, and courts.
3. People were encouraged to wear khadi (homespun cloth) and adopt swadeshi (boycott of foreign goods).

Economic Impact:
1. Boycott of British goods: The movement led to a significant decline in the consumption of British goods. People started boycotting foreign textiles, liquor, and other imported products.
2. Promotion of indigenous industries: The emphasis on khadi led to the revival of the Indian textile industry. People began spinning and weaving their own cloth, which provided employment and boosted the local economy.
3. Decline in revenue: The boycott of British institutions and goods resulted in a decline in government revenue. The British administration faced financial difficulties as tax collections decreased.
4. Closure of foreign-owned businesses: Many foreign-owned businesses, especially British firms, faced economic losses and had to shut down due to the widespread boycott.
5. Rise of Indian-owned businesses: Indigenous businesses and small-scale industries flourished as people shifted their consumption patterns towards locally produced goods.
6. Unemployment: While the non-cooperation movement created employment opportunities in the khadi industry, the shutdown of foreign-owned businesses also led to job losses for many individuals.

Conclusion:
The non-cooperation movement had a significant economic impact on India. It led to the decline of British economic dominance, the promotion of indigenous industries, and the rise of Indian-owned businesses. However, it also resulted in economic hardships for some individuals, particularly those who lost their jobs due to the closure of foreign-owned firms. Overall, the movement played a crucial role in India's struggle for independence and paved the way for future movements and initiatives aimed at achieving self-reliance and economic freedom.