Q.1 How did the first world war create new social and economic situations in India?
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The First World War created a new political and economic situation in India.
(i) It led to huge increase in defense expenditure, Custom duties were raised,income tax was introduced to finance the war.
(ii) Villagers were called upon to supply soldiers, forced recruitment in rural areas caused widespread resentment.
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The war also increased custom duties and tax was established. During the war time prices of things twice over and also forced employment of villagers in army which cause wide spread anger. Crop failure in many parts of India was most important to shortage of food.
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