Q29. How had the First World War created economic problems in India?
Explain with examples.
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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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Answered by
1
Answer:
First World War created economic problems in India:
It led to a huge increase on defence expenditure.
Taxes were increased.
Custom duties were raised.
Income Tax was introduced.
Forced recruitment in Army from rural areas.
The failure of crops in many parts of India.
Prices of consumer goods almost doubled from 1913-1918.
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