CBSE Class 10 Answered

Impact of the First World War on the Indian economy:

·       The crops failed in 1918-19 and 1920-21 resulting in acute shortage of food. This was accompanied by an influenza epidemic.

·       There was a huge increase in defense expenditures. The government introduced income tax and increased custom duties to meet war. Thus, the Indian population suffered due to rise in taxes.

·       Inflation doubled during the war resulting into extreme hardships for the common people.

·       Since the industries in Manchester started to manufacture goods for the war, a vacuum was created in India. The Indian industries not only started manufacturing clothes and other required domestic goods but also started exporting the war materials. Hence, the industries in India started booming. This also resulted in the creation of thousands of jobs.