Question

How had the first world war created a new economic suitation in india? Explain with three example

Answer 1

Answer:

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.