Question

Choose the correct answers.
1. The First World War (1914-1918) affected India in the economic field. How?
(a) It led to huge defence expenditure met by increased taxes
(b) Custom duties and income tax were introduced
(c) Prices doubled between 1913-1918, leading to extreme hardship for common
people
(d) All the above
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Answer 1

Answer:

option(d) all of the above.

The war created a political and economic situation.

• It led to a huge increase in defence expenditure which was financer by war loans and increased taxes:custom duties were raised and income tax introduced.
• Through the war years prices increased doubling between 1918 and 1919 leading to extreme hardship for common people.
• Billages 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 influenza epidemic.
• According to the census of 1921,12 to 23 million people perished asa a result of famines and the epidemic.

Explanation:

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