What economic impact did the First World War have on India
Answers
Explanation:
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.
(ii)Increased military expenditure and the demands for war supplies led to the sharp rise in prices which badly affected the common mass. They found it difficult to fulfil even their essential needs.
(iii)On the other hand business groups reaped fabulous profits from the war. The war created a demand for industrial goods like jute bags, cloth, rails, and caused a decline of imports from other countries into India. As a result Indian industries expanded during the war.
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Answer:
The First World War changed the political and economical situation of India which led to an increase in defence expenditure. This was further financed by war loans and increasing taxes.
Moreover, during the war years, from 1914 to 1918, the prices of essential commodities like foodgrains rose sharply, which led to hardship among the commoners.
The villagers and farmers were forcefully recruited into the British Army. This caused widespread anger.
Those who participated in the war had also faced hardships.
Explanation: