question_answer

Explain the new economic and political situations, created during the First World War in India.                                                                                                                      [Delhi 2008]

Answer:

(i) The First World War led to a huge increase in defense expenditure which was financed by war loans and increasing taxes.

(ii) Custom duties were increased and income tax was introduced.

(iii) Between 1913-1918 prices of commodities almost doubled leading to extreme hardship for the common people.

(iv) Villages were called upon to supply soldiers and the forced recruitment in rural areas caused widespread anger.

                                                                                                                       (Any two)