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Q.

The First World War had a significant economic ____ on India.

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Detailed Solution

The First World War had a significant economic impact on India. The government raised taxes on individual and corporate income to cover a substantial rise in defence spending. As a result, military spending and demand for war items have increased dramatically, making life more difficult for the average individual. The war raised the need for industrial commodities such as jute bags, cotton, rail, and so on while lowering imports into India from other countries. During the war, Indian industries expanded, and Indian business groups began to demand more significant opportunities for growth. The profits from the conflict were huge for commercial conglomerates.

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