What was the impact of the …

(i) war created a new economic and political situation. (ii) it leds to huge increases in defence expenditure which was financed by war loans and increase in taxes - costom duties raised and income taxes were introduced (iii) through the war year the prices increased - doubling between 1913 - 1918 leading to extreme hardship to common people (iv) villagers are called upon to supply soldiers for force requirement causes wide spread anger (v)through the year of 1918 - 1919 and 1920- 1921 crops failed in many parts of india resulting in acute shortage of food

search-icon-image Question Bookmark What economic impact did the First World War have on India? Hard Solution verified Verified by Toppr The First World War had the following economic impact on India: (i) In order to meet a huge rise in defense expenditure, the government increased taxes on individual incomes and business profits. (ii) Increased military expenditure and the demands for war supplies led to a sharp rise in prices which created great difficulties for the common people. (iii) The war created a demand for industrial goods like jute bags, cloth, rail, etc. and caused a decline in imports from other countries into India. (iv) Indian industries expanded during the war and Indian business groups began to demand greater opportunities for development. (v) Business groups reaped fabulous profits from the war.