Explain any three facts about the new economic situation created in India by the First World War

CBSE Class 10 CBSE Class 10 Social Science
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1

Explain any three facts about the new economic situation created in India by the First World War.

2

THE First World War created a new economic situation in India :

  • It led to a huge increase in defence expenditure.
  • Increased taxes - customs duties were raised. Income tax introduced.
  • Prices were increased through the war years.
  • It led to extreme hardship for the common people.
  • Crops were failed in many parts of India in 1918-1919 and 1920-1921.
  • Resulted in acute shortage of food.