How did the first world war was create new economic and political situations in India? Explain with example
Answers
1.It increased the defence expenditure which was handled by war expenses.
2.Income tax were introduced and custom duties were introduced.
3.Villages were called upon to supply soldiers.Forced recruitment created anger in rural areas.
4.Crops failed during 1918 to 1919 and 1920 to 1921.
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.