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.
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.
What impact did World war 1 have on India Class 10?
(i) The British Government raised taxes, custom duties and income taxes in India to finance the war expenditures. (ii) Villagers and farmers were forcefully recruited in the British army. (iii) There was a rise the prices of food and other essential things.
What was the impact of I World war on India?
(i) The war created a new economic and political situation. (ii) 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. (iii) Prices increased, doubling between 1913 and 1918. This hit the common people.
How did First World War created economic problems in India?
It led to a huge increase on defence expenditure. The failure of crops in many parts of India. … Prices of consumer goods almost doubled from 1913-1918.
What was the impact of first world on India?
The First World War made an impact on the Indian economy in several ways: the prices of agricultural produce increased considerably, the silver currency appreciated by leaps and bounds, the industrialists benefited from windfall profits to such an extent that they were overcome by a veritable euphoria of investment …
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.
What was the effect of the Second World War on India in short?
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 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 were the impacts of World war One on the international economy?
World War I had a damaging effect on the economy. Although it stimulated new industries, some were not competitive. As an importer of labour, capital, and manufactured goods, and an exporter of commodities, Australia benefited from its relationship with the British Empire.
The war provided a place for women in the labor force, and this, along with labor laws, gave women new opportunities to grow socially and professionally (Handler, 1979). Even if the wartime opened new opportunities for women in the workforce, it also created much social tension in the American family.