Write a note on economic impact of First World War on India.
Answers
Explanation:
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.
• This was accompanied by an influenza epidemic.
• According to the census of 1921, 12 to 13 million people perished as a result of famines and the epidemic.
• People hoped that their hardships would end after the war was over. But that did not happen.
Answer:
The economic impact of the First World War on India:
(i)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.
(ii)Increased military expenditure and the demands for war supplies led to the sharp rise in prices which badly affected the common mass. They found it difficult to fulfil even their essential needs.
(iii)On the other hand business groups reaped fabulous profits from the war. The war created a demand for industrial goods like jute bags, cloth, rails, and caused a decline of imports from other countries into India. As a result Indian industries expanded during the war.
Explanation:
Hope this answer will help you...