3. What economic impact did the First World War
have on India?
Answers
Answer:
The First World War had the following economic impact on India:
(i) In order to meet a huge rise in the defence expenditure, the government increased taxes on individual incomes and business profits.
(ii) Villagers were called upon to supply soldiers, forced recruitment in rural areas caused widespread resentment.
(iii) Prices of essential commodities doubled between 1913 and 1918 leading to extreme hardship to the common people.
(iv) In 1918-19, 1920-21 crops failed in many parts of India resulting in acute food shortage.
(v) Influenza epidemic spread. According to the census in 1921, 12-13 million people perished due to famines and epidemics.
Answer:
The First World War created a new economic and political situation.
• It led to a huge increase in defence expenditure which was financed by war loans and increasing taxes
• customs duties were raised and income tax introduced.
• Through the war years prices increased - doubling between 1913 and 1918 - leading to extreme hardship for the common people.
• Villages were called upon to supply soldiers, and the forced recruitment in rural areas caused widespread anger.
• Then in 1918-19 and 1920-21, crops failed in many parts of India, resulting in acute shortages of food.
• This was accompanied by an influenza epidemic.
• According to the census of 1921, 12 to 13 million people perished as a result of famines and the epidemic.
• People hoped that their hardships would end after the war was over. But that did not happen.
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