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Q.

Choose that given statement true/false


The First World War created new economic situations in India.


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a

False 

b

True

answer is A.

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Detailed Solution

The above statement is true. The consequences of the First World War created new economic situations in India
  • The defence expenditure increased to finance the war.
  • There was an increase in taxation to fund war loans. Income tax was introduced during the first world war.
  • It led to an increase in the prices of commodities, doubling between 1913 and 1918.
  • Failure of crops led to food shortages in India.

  • The First World War thus created hardships for ordinary people.
     
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