Q. Explain any three facts about the new economic situation created in India by the First World War.
Answers
Answer:
The First World War created a dramatically new economic situation in India:
(i) Manchester imports into India declined as the British mills were busy with war production to meet the needs of the army paving the way for the Indian mills to supply for the huge home market.
(ii) As the war prolonged, Indian factories were called upon to supply war needs. As a result new factories were set up, new workers were employed and everyone was made to work longer hours.
(iii) Cotton production collapsed and exports of cotton cloth from Britain fell dramatically after the war, as it was unable to modernize and compete with US, Germany, Japan. Hence within colonies like India, local industrialists gradually consolidated their position capturing the home market
Answer:
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