Explain the impact of the first …

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.

The War created a new economic and political situation :
(i) 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.
(ii) Through the war years, prices increased – doubling between 1913 and 1918 – leading to extreme hardships for the common people.
(iii) Villagers were called upon to supply soldiers, and the forced recruitment in rural areas caused widespread anger.

(iv) The First World war gave a boost to the Indian industries. Since textile industries in Britain began to supply goods related to the War like uniforms, shoes and racksags, the Indian industries took advantage of the void and bagan to manufacture the cloth.