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