Question

What economic impact did the First World war have on India?

Answer 1

Hint: The economic history of World War I covers the strategies used by the war, as well as postwar topics including war debts and reparations. It also involves Labour, manufacturing, and agriculture economic mobilization that leads to economic failure. It deals with economic warfare, such as the German blockade, as well as certain topics that are closely linked to the economy, such as military transportation issues. See Home Front During World War I for a wider viewpoint.

Complete answer:
First World War -
World War I, also known as the First World War or the Great War, was an international conflict that engulfed much of Europe, as well as Russia, the United States, the Middle East, and other countries, from 1914 to 1918. The Central Powers—primarily Germany, Austria-Hungary, and Turkey—were pitted against the Allies—primarily France, the United Kingdom, Russia, Italy, Japan, and, starting in 1917, the United States. The Central Powers were defeated at the end of the war. In terms of slaughter, bloodshed, and devastation, the war was practically unprecedented.

The First World War shattered empires, birthed a slew of new nation-states, sparked liberation movements in Europe's colonies, pushed the United States to become a global power, and paved the way for Soviet communism and Hitler's rise.

India's economy was impacted by the First World War in the following ways:
i) The government raised taxes on individual salaries and company profits to cover a massive increase in defence spending.
ii) Increased military spending and demand for war supplies resulted in a dramatic increase in costs, causing considerable suffering for the common people.
iii) The war increased demand for industrial goods such as jute bags, fabric, and rail, and reduced imports into India from other countries.
iv) During the war, Indian factories grew, and Indian business groups began to demand more growth opportunities.
v) The war brought massive profits to business organizations.

Note:
The global economy started to deteriorate after the war ended. The United States suffered a moderate economic recession from 1918 to 1919, but a mild rebound in the second half of 1919. The United States endured a more serious recession in 1920 and 1921, when the global economy collapsed.

During WWI, four monarchies fell: Germany, Turkey, Austria-Hungary, and Russia. People became more receptive to other philosophies as a result of the war, such as the Bolsheviks' rise to power in Russia and fascism's victory in Italy and, later, Germany.