State how Britain found it difficult to recapture the Indian market after World War I


  • Post war economic recovery proved difficult. Britain, which was the world’s leading economy in the pre-war period, in particular, faced a prolonged crisis.
  • While Britain was pre occupied with war, industries had developed in India and Japan.
  • After the war, Britain found it difficult to recapture its earlier position of dominance in the Indian market, and to compete with Japan internationally.
  • To finance war expenditures, Britain had borrowed liberally from the US.
  • This meant that at the end of the war Britain was burdened with huge external debts.