Question

3. What was the impact of the first world war on the economic condition in India ?​

Answer 1

Answer:

The First World War had the following economic impact on India:

(i) In order to meet a huge rise in defense expenditure, the government increased taxes on individual incomes and business profits.

(ii) Increased military expenditure and the demands for war supplies led to a sharp rise in prices which created great difficulties for the common people.

(iii) The war created a demand for industrial goods like jute bags, cloth, rail, etc. and caused a decline in imports from other countries into India.

(iv) Indian industries expanded during the war and Indian business groups began to demand greater opportunities for development.

(v) Business groups reaped fabulous profits from the war.

Explanation:

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Answer 2

Answer:

The First World War led to a huge rise in the defence expenditure of the Government of India. The government in turn increased taxes on individual incomes and business profits. It Increased military expenditure and the demands for war supplies led to the sharp rise in prices which badly affected the common mass.