The First World War altered India's ____ and political situation.

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The First World War altered India's economic and political situation.
It resulted in a significant increase in the Government of India's defence spending. In response, the government increased taxes on business profits and individual income. Increased military spending and demand for war supplies caused a sharp price rise, causing great hardship for the commoners. Business groups, on the other hand, profited enormously from the war. The war increased the demand for industrial goods while decreasing imports from other countries into India. As a result, Indian industries expanded during the war, and Indian business groups demanded greater development opportunities.

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