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Impact of first world war on indian economy society and polity

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Answered by warifkhan
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As war expenditure increased the British increased taxes in India. This had a negative impact on the Indian economy. Prices of essential goods increased,there was shortage of food, inflation and unemployment reached unprecedented levels.

The war created new economic and political situations: 1) it led to huge increase in defence expenditure and it was financws by the war loans and increasing taxes. the custom duties were raised and the income tax was introduced. 2) through the war years thenrpices rise which created problems for poor people.

Answered by farhankhan7129
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