How had the ‘First World War’ created economic problems in India

• Nationalism in India (C10)

How had the ‘First World War’ created economic problems in India ? Explain with examples.

Answer

First World War created economic problems in India:

1. It led to a huge increase on defence expenditure

2. Taxes were increased

3. Custom duties were raised.

4. Income Tax was introduced.

5. Forced recruitment in Army from rural areas.

6. The failure of crops in many parts of India.

7. Prices of consumer goods almost doubled from 1913-1918.