Question

Explain the major factor about the new economy created in India by the first world war.​

Answer 1

Answer:

The facts were: (i) It led to a huge increase in defence expenditure which was financed by war loans and increasing taxes. (ii) Customs duties were raised and income tax was introduced. (iii) Through the war years prices increased-doubling between 1913 and 1918 - leading to extreme hardship for the common people.

Answer 2

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The First World War created a new economic situation in India. 1. The huge increase in defense expenditure was financed by war loans and increasing taxes. ... Crops failed in many parts of India in 1918-19 and 1920-2, resulting in acute shortage of food.