Question

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








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Answer 1

Answer:

The First World War created a new economic and political situation in India. It led to huge increase in defence expenditure which was Financed by war loans and increasing taxes custom duties were raised and income tax was introduced. ii Prices increased doubling between 1913-18. This hit the common people.

Explanation:

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Answer 2

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• 1) The First World War created a new economic and political situation in India. It led to huge increase in defence expenditure which was Financed by war loans and increasing taxes custom duties were raised and income tax was introduced.
• 2) Prices increased doubling between 1913-18. This hit the common people.
• 3) Villagers were asked to supply soldiers and through forced recruitment in rural areas.
• 4) During 1918-19 crops failed in many parts of India which created shortage of food.
• 5) Spread of influenza epidemic caused death of 12 to 13 million people in India.

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