Question

Highlight the major fact about the new economic situation created by first world war in India?​

Answer 1

♥️Answer ♥️

(i)First world war led to a huge increase in defence expenditure which was financed war loans and increase in taxes. ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀

(ii) Custom duties were raised and new income taxes were introduced.

(iii) Through war years prices increased - doubling between 1913 and 1948.

(iv) Villagers were called upon to supply soldier.

(v) forced recruitment in rural areas caused widespread anger.

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Answer 2

Answer:

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

• The huge increase in defense expenditure was financed by war loans and increasing taxes.

• Customs duties were raised and income tax was also introduced.

• Also iron Smelters were affected because of Tata stell and iron industry.

• Villagers were called upon to supply soldiers, forced recruitment in rural areas caused widespread resentment.

• Many of them were dead because of shortage of food.

The main taxes were :-

• Ryot vari

• Mahalvary

• The basic structure of federal finance was established in the first twenty years of British rule.

• Under the new arrangement, customs, salt tax, opium tax, and railway income were the main revenues raised and used exclusively by the central government..

• All were forced to get loans from government

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• Only Tata iron and steel industry was benifited

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