Question

Explain the effwct of first world war on india

Answer 1

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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.

Answer 2

Answer:

The war created a new economic and political situation. (ii) It led to huge increase in defence expenditure which was financed by war loans and increasing taxes, custom duties were raised and income tax was introduced. (iii) Prices increased, doubling between 1913 and 1918.