Question

5) Explain any three facts about the new economic situation created in India by the First world war
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Answer 1

Answer:

The prices of commodities doubled between 1913-1918, leading to extreme hardships for the common people. Villages were also called upon to supply soldiers, and forced recruitment in rural areas caused widespread anger. 3. Crops failed in many parts of India in 1918-19 and 1920-2, resulting in acute shortage of food.

Explanation:

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Answer 2

ANSWER

• It led to a huge increase in defence expenditure.Increased taxes - customs duties were raised.

• Income tax introduced

• Prices were increased through the war years.It led to extreme hardship for the common people.

• Crops were failed in many parts of India in 1918-1919 and 1920-1921.

• Resulted in acute shortage of food

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