There were four major consequences of Second World War on India and they included high inflation which was on account of war expenditure, the value of Indian currency took a nose dive, economic imbalances due to currencies exchange problems and the development of exchange control.
How was the Indian economy affected by the First World War?
(i) The First World War led to a huge rise in the defence expenditure of the Government of India. … The war created a demand for industrial goods like jute bags, cloth, rails, and caused a decline of imports from other countries into India. As a result Indian industries expanded during the war.
How did the war affect the economy?
Putting aside the very real human cost, war has also serious economic costs – loss of buildings, infrastructure, a decline in the working population, uncertainty, rise in debt and disruption to normal economic activity.
How did World war 1 affect Indian nationalism?
When the war broke out, a large number of Indian nationalists vocally came out in support of and campaigned for the war effort. Contributing to the war, they believed, would allow Indian to demand greater freedoms from Great Britain.
What was the condition of India during the World war First?
(i) First of all the war created a new economic and political situation. (ii) It led to a huge increase in defence expenditure which was financed by war loans and increasing taxes; custom duties were raised and income tax introduced.
Does war really help the economy?
Heightened military spending during conflict does create employment, additional economic activity and contributes to the development of new technologies which can then filter through into other industries. … One of the most commonly cited benefits for the economy is higher GDP growth.
How did World war 2 affect the economy?
American factories were retooled to produce goods to support the war effort and almost overnight the unemployment rate dropped to around 10%. … As more men were sent away to fight, women were hired to take over their positions on the assembly lines.
What are the two bad effects of war?
Death, injury, sexual violence, malnutrition, illness, and disability are some of the most threatening physical consequences of war, while post-traumatic stress disorder (PTSD), depression, and anxiety are some of the emotional effects.
How did WWI alter the relationship between India and Britain?
At the start of World War 1, Britain controlled India as part of the British Empire. Most of the people of India wanted independence, and protests toward this end had already gone on for awhile, but so far the British government had contained the protests and maintained their hold on India.