Explain the new economic and political situations, created during the First World War in India

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.
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