How did the first world war affect the economic condition of india?
Answers
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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When first world war end it affects economic conditions of India by many ways. After this war, because of a lot expenditure by British government they take extra taxes by people to fulfill their finance. People became poor after it..