Question

State how Britain found it difficult to recapture the Indian market after world war 1

Answer 1

Post war recovery of economy proved difficult. Britain, which was the world's leading economy in the pre war period , faced a prolonged crisis.While Britain was pre occupied with war , industries had developed in India and Japan.After the war Britain found it difficult to recapture it's earlier position of dominance in the Indian market and to compete with Japan internationally. To finance war expenditure Britain had borrowed liberally from the US. As a result at the end of the war Britain was burdened with huge external debts.