Qs. How had the 'First World War' created
economic problems in India ? Explain with
examples.
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Answer:
The first world war created a political and economic situation in India as-
1. It led huge increase in defence expenditure, Custom duties were raised, income tax was introduced to finance the war.
2.Princes increased doubling between 1913-18.This hit the common people.
3.Villagers were upon to supply soldiers, forced recruitment in rural areas caused widespread resentment.
4.In 1918-21 crops failed in many parts of India resulting in acute food storage.
5.Influenza epidemic spread according to the census 1921 12-13 million people perished due to famines and epidemics.
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