Question

What economic impact did the first world war have on India? In short point

Answer 1

While the first world war British was ruling the India

Answer 2

Answers

The First World War hugely impacted the economic situation in India. As a result of the war, the defence expenditures of the Government of India rose. The government increased taxes on individual incomes and business profits to meet the war expenses. Many goods and articles began to supplied to the war zones which led to acute rise in prices of the commodities. This created many difficulties for the common people.

The First World War led to the rise and the expansion of the Indian industries. Since the British industries began to export goods to the war zone in order to meet daily requirements of the troops (jute bags, clothes etc) and materials to improve infrastructure, the Indian industries began to manufacture goods and articles for the Indian markets. It also began to supply goods for the war needs. Thus, Indian industries reaped good profits during the war

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