explain effects of first world war in inda
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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.
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As war expenditure increased the British increased taxes in India. This had a negative impact on the Indian economy. Prices of essential goods increased,there was shortage of food, inflation and unemployment reached unprecedented levels
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