Question

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

Answer 1

The following happened in India: 1. The prices increased doubling between 1913 to 1918. It created hardships for common people 2. Introduction of taxes. For example- custom duties were doubled and income taxes introduced 3. Crops failed in many parts of India which led to acute shortage of food

Answer 2

First World War created a new economic situation by: 

1. New taxes like income tax were introduced and customs duties were raised to finance increasing war expenditure.

 2. Prices of goods almost doubled in the few years and became a huge burden for the poor. 

3. There was crop failure in many parts of India which led to a shortage of food.