Question

Explain any three facts about the new economic situation created in India by the first world war.

Answer 1

1) As British people were busy to meet war needs Indian started establishing new industry
2) They were free to do trade in any part of world
3) New ideas and opportunities were created
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Answer 2

Three facts about the new economic situation created

in India by the First World War were:

a. The defence expenditure was financed by the war

loans, the increased taxes, raising the custom

duties and introducing the income tax and

increased prices of the commodities which caused

economic hardship for the common people.

b. For the continuous supply of the soldiers the

villages were called upon and recruitment was

done forcefully.

c. There was a period of crop failure in many parts

of the country which caused acute food shortages

and millions of people perished due to the famine

and the epidemics.