Explain the new economic and political situations, created during the First World War in India.
. THE First World War created a new economic and political situation :
- It led to a huge increase in defence expenditure which was financed by war loans.
- Taxes were increased, custom duties were raised and income tax was introduced.
- Through the war years, prices increased doubling between 1913 and 1918 leading to hardship for the common people.
- Forced recruitment in rural areas caused widespread anger.
- The failure of crops in many parts of India had created food shortages, leading to the added misery of the people.
- There was the outbreak of the great influenza epidemic. Millions of the people perished due to influenza and starvation.
- The Nationalist Movement grew stronger during the war years.