Question

Describe any two ill effect of the First World War on the economy of India​

Answer 1

(i) 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. (ii) Increased military expenditure and the demands for war supplies led to the sharp rise in prices which badly affected the common mass.

Answer 2

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(i) 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.

(ii) Increased military expenditure and the demands for war supplies led to the sharp rise in prices which badly affected the common mass.