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The Making of the National Movement
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31/05/2021 1:22 pm
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What economic impact did the First World War have on India?
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31/05/2021 1:23 pm
- World War I altered the economic and political situation in India.
- Defence expenditure of the Government of India rose manifold. As a consequence taxes on individual incomes and business profits increased several times.
- Increased military expenditure and demands for war supplies, resulted in a sharp rise in prices, causing great difficulties for the common people.
- Demand for industrial goods (jute bags, cloth, rails) and a decline of imports from other countries led to the expansion of Indian industry. So, Indian business groups earned a huge profit.