How did First World War create new economic and political situation in India?

i The First World War created a new economic and political situation in India. It led to huge increase in defence expenditure which was Financed by war loans and increasing taxes custom duties were raised and income tax was introduced. ii Prices increased doubling between 1913-18. This hit the common people.

How did First World War created a new economic situation in India explain with examples?

The First World War created a new political and economic situation in India. (i) It led to huge increase in defense expenditure, Custom duties were raised,income tax was introduced to finance the war. (ii) Villagers were called upon to supply soldiers, forced recruitment in rural areas caused widespread resentment.

How did the first world war affect the economic condition of India?

Answer: The First World War had the following economic impact on India: (i) In order to meet a huge rise in the defence expenditure, the government increased taxes on individual incomes and business profits. … (iii) The war created a demand for industrial goods like jute bags, cloth, rail, etc.

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What created a new economic and political situation in India during1913 1918?

(a) The war created a new economic and political situation. (b) it led to huge increase in defense expenditure which was financed by war loans and increasing taxes, custom duties were raised and income tax was introduced. (c) Prices increased, doubling between 1913-18. This hit the common people.

What created a new economic situation in India?

The First World War created a new economic situation in India. … This acute economic situation was further accompanied by an influenza epidemic and according to the census of 1921, about 12 to 13 million people perished because of the famine and the epidemic.

How the First World War create a new economic and political situation?

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.

How had the First World War created?

The assassination of Austrian Archduke Franz Ferdinand on 28 June 1914 set off a chain of events that led to war in early August 1914. The assassination was traced to a Serbian extremist group that wanted to increase Serbian power in the Balkans by breaking up the Austro-Hungarian Empire.

What was the impact of Great Depression in India?

(i) The impact of the Great Depression in India was felt especially in the agricultural sector. (ii) As international prices crashed, prices in India also plunged. (iii) The fall in agricultural price led to reduction of farmers’ income and agricultural export. Wheat prices in India fell by 50 percent.

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What two factors shaped Indian politics by late 1920s?

The two factors that shaped Indian politics towards late 1920s…

  • The first was the effect of the worldwide economic depression. …
  • The Tory government in Britain constituted the Simon Commission to look into the functioning of the Constitutional government in India.