Question

what economic impact did the first world war have on India​

Answer 1

Answer:

The economic impact of the First World War: (i)The First World War led to a huge rise in the defence expenditure of the Government of India. The government in turn increased taxes on individual incomes and business profits.

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Answer 2

Answer:

The First World War altered the economic and political situation in India. It led to a huge rise in the defence expenditure of the Government of India. The government, in turn, increased taxes on individual incomes and business profits. Increased military expenditure and the demands for war supplies led to a sharp rise in prices, which created great difficulties for the common people. On the other hand, business groups reaped fabulous profits from the war. The first world war caused a decline in imports from other countries into India.