Question

What were the effects of 1st world war on Indians and indian economy?​

Answer 1

Answer:

The First World War created a new economic and political situation.

• It led to a huge increase in defence expenditure which was financed by war loans and increasing taxes

• customs duties were raised and income tax introduced.

• Through the war years prices increased - doubling between 1913 and 1918 - leading to extreme hardship for the common people.

• Villages were called upon to supply soldiers, and the forced recruitment in rural areas caused widespread anger.

• Then in 1918-19 and 1920-21, crops failed in many parts of India, resulting in acute shortages of food.