Question

what economic impact did the First World War have on India?​

Answer 1

Answer:

(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.

Answer 2

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• The First World War led to a huge rise in the defense 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 the  sharp rise in prices which badly affected the common mass. They found it difficult to  fulfil even their essential needs. But the business groups earned huge 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.