Question

What was the impact of first world war on indian economy

Answer 1

World wars always had deeply affected the Indian Economy be it was WW1 or WW2. The reason people don’t talk much about the India and its economy in First World War is that many assume that India was not attached with it, which is quite the contrary. WW2 had much serious implications because it had curtailed India’s trade policies within the commonwealth of Britain and ended India’s touch with European nations.
The First World War caused India to nearly go bankrupt and also a major loss in casualties. Indian troops as high as 800,000 in numbers fought in every aspect of War and a majority 500,000 Indian people volunteered to fight for the British. Offers of financial and military help were made from all over the country. Hugely wealthy princes offered great sums of money for aiding the British in the war. But soon after the war Great Depression occurred in the European nations which soon had its implication in India.

Answer 2

It speeded up the process of industrialization

It led to a huge rise in the defence expenditure of the govt of india

It created a demand for industrial goods like jute bags, cloth, rails etc. and caused a decline of imports from other countries into India