Question

How did the 'First World War' create a new economic and political situation in India ? Explain with examples.

Answer 1

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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Answer 2

The First World War created a new economic situation

in India. The three examples are:

a. The defence expenditure was financed by the war

loans, the increased taxes, raising the custom

duties and introducing the income tax and

increased prices of the commodities which caused

economic hardship for the common people.

b. For the continuous supply of the soldiers the

villages were called upon and recruitment was

done forcefully.

c. There was a period of crop failure in many parts

of the country which caused acute food shortages

and millions of people perished due to the famine

and the epidemics.