explain the new economic and political situation created during the first World War in india
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(a) The war created a new economic and political situation.(b) it led to huge increase in defense expenditure which was financed by war loans and increasing taxes, custom duties were raised and income tax was introduced.(c) Prices increased, doubling between 1913-18. This hit the common people.
(d) Villagers were asked to supply soldiers and through force recruitment in rural areas.
(e) During 1918-19, crops failed in many parts of India which created shortage of food.
(f) Spread of influenza epidemic and 12 to 13 million people died
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The First World War created a new political and economic situation in India.
(i) It led to huge increase in defense expenditure, Custom duties were raised,income tax was introduced to finance the war.
(ii) Villagers were called upon to supply soldiers, forced recruitment in rural areas caused widespread resentment.
(iii) Prices of essential commodities doubled between 1913 and 1918 leading to extreme hardship to the common people.
(iv) In 1918-19, 1920-21 crops failed in many parts of India resulting in acute food shortage.
(v) Influenza epidemic spread. According to the census in 1921, 12-13 million people perished due to famines and epidemics.
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