Explain the effect of 1st world war on india
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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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The War created a new economic and political situation :
(i) It led to a huge increase in defence expenditure which was financed by war loans and increasing taxes, customs duties were raised, and income tax introduced.
(ii) Through the war years, prices increased – doubling between 1913 and 1918 – leading to extreme hardships for the common people.
(iii) Villagers were called upon to supply soldiers, and the forced recruitment in rural areas caused widespread anger.
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