Question

What economic impact did the First World War have on India?

Answer 1

• The economic and political situation in India was altered by the First World War.
• The Colonial Government of India ended up massively increasing the expenditure for defence.
• The Colonial Government increased the taxes on business profits and individual incomes.
• Business groups of India started to insist on more opportunities for development as the Indian industries had expanded during the war.
• There was a sharp rise in prices due to Increased demands for war supplies and military expenditure, which in turn posed lots of difficulties for common people.
• Fabulous profits were reaped by business groups due to war which was completely in contrast to the situation of the common man.
• The First World War created a situation where imports from other countries into India started reducing and there was higher demand for goods like rails, cloth, jute bags.