Question

What was the empact of the first world war on economic condition in india?

Answer 1

What were the economic implication of the first world war on India?

(i) 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.

(ii) Increased military expenditure and the demands for war supplies led to the sharp rise in prices which badly affected the common mass.