Question

II. Explain:
1. What economic impact did the first World War have on India?​

Answer 1

Answer:

The First World War altered the economic and political situation in India. It led to a huge rise in the defence expenditure of the Government of India. The government, in turn, increased taxes on individual incomes and business profits.

Explanation:

Answer 2

Answer:

The First World War had the following economic impact on India: (i) In order to meet a huge rise in the defence expenditure, the government increased taxes on individual incomes and business profits.