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

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

2. The prices of commodities doubled between 1913-1918, leading to extreme hardships for the common people. Villages were also called upon to supply soldiers, and forced recruitment in rural areas caused widespread anger.

3. Crops failed in many parts of India in 1918-19 and 1920-2, resulting in acute shortage of food.