Question

explain the fact about new economic situation created in India by the first world war

Answer 1

Answer:

Explanation:

The First World War created a new economic situation in India :

-It led to a huge increase in defence expenditure.

-Increased taxes - customs duties were raised. Income tax introduced.

-Prices were increased through the war years.

-It led to extreme hardship for the common people.

-Crops were failed in many parts of India in 1918-1919 and 1920-1921.

-Resulted in acute shortage of food.

Answer 2

A new situation was created in India after first world war.

• The first world war led to a huge increase in defense expenditure. It was financed by increasing taxes and war loans.
• Income tax was introduced and custom duties were increased.
• It lead to extreme hardship for common people as prices increased doubling between 1913 and 1918.
• Acute food shortage was there as crops failed in many parts of India.

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