Question

How had the First World War created a new economic situation in India? Explain with three examples.

Answer 1

The First World War created a new economic situation in India.

1. There was huge expenditure on defence during the war. This led to a rise in taxes and custom duties.

2. Soldiers were forced to join the British army and go to fight across the seas. This created resentment among the villagers.  The failure of crops and the spread of influenza epidemic caused a lot of hardships.

3. A large number of restrictions were laid on the business class. They reacted against the policies of the British.