Question

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

Answer 1

a) The First World War led to a huge rise in the defense expenditure of the Governments of Europe. The government in turn increased taxes on individual incomes in colonies like India.

b) Increased military expenditure and the demands for war supplies led to a sharp rise in prices which created great difficulties for the common people battling against the inflation.

c) India also became a supplier of Human resource as fighters and sacrificed around 2 million people for colonial powers.