Industrial prices nearly doubled in the six years after 1914. Accelerating prices benefitted Indian industry. Farm prices rose as well, but at a slower pace than industrial prices. The internal terms of trade(ratio of export prices to import prices) moved against agriculture.
What was the effect of World war 1 on Indian economy?
The war created new economic and political situations: 1) it led to huge increase in defence expenditure and it was financws by the war loans and increasing taxes. the custom duties were raised and the income tax was introduced. 2) through the war years thenrpices rise which created problems for poor people.
How did First World war affect the Indian economy explain with examples?
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 ww1 affect economically?
When the war began, the U.S. economy was in recession. … Entry into the war in 1917 unleashed massive U.S. federal spending which shifted national production from civilian to war goods. Between 1914 and 1918, some 3 million people were added to the military and half a million to the government.
What was the condition of India after World War 1?
(iv) Villages were called upon to supply soldiers, and forced recruitment in rural areas caused widespread anger. (v) Then in 1918-19 and 1920-21, crops failed in many parts of India, resulting in acute shortage of food. This was accompanied by an influenza epidemic.
What was the new economic and political situation created in India due to the outbreak of the First World War?
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.
Who has the largest army in World War 1?
|Countries in First World War||Standing Armies & Reserves in August 1914||Mobilised Forces in 1914-18|