Question

what was the impact of the first world war in india economy

Answer 1

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. Increased military expenditure and the demands for war supplies led to a sharp rise in prices which created great difficulties for the common people. On the other hand, business groups reaped fabulous profits from the war. The war created a demand for industrial goods such as jute bags, cloth and rails, and caused a decline in the imports from other countries into India. As a result, Indian industries expanded during the war.

Answer 2

$\bf{Impacts \: of \: first \: World \: War} \\ \bf{ ( 1914 - 1918 )}$

The first world war ended in 1918 but it had a huge impact upon India.


◾️ Indian soldiers head out in the war in the hope of gaining Independence from the British. They came into contact with soldiers from other countries which increased their awareness and understanding of the exploitative nature of imperialism.

◾️ The government increase taxes in order to meet the rising defence expenditures.

◾️This in return resulted in a surprise and prices which affected the common people.

◾️ The industrial classes have benefited from the wire because there was a demand for industrial goods. After Darbar the section demanded more opportunities for them to develop.

◾️ One of the most important consequences of the war was the impact of socialist ideas on the Nationalist movement.