Describe the implications of First World War on the economic and political situation of India.

Explanation

The implications of First World War on the economic and political situation of India are discussed below:
Economic
(i) It led to a huge increase in defence expenditure which was financed by war loans and increasing taxes: customs duties were raised and income tax introduced.
(ii) Through the war years prices increased-doubled between 1913 and 1918-leading to extreme hardship for the common people.
(iii) Villages were called upon to supply soldiers, and the forced recruitment in rural areas caused widespread anger.
Political
(i) Forced recruitment in rural areas caused widespread anger.
(ii) The failure of the crops in many parts of India had created food shortages, leading to the added misery of the people.
(iii) There was the outbreak of the great influenza epidemic. Millions of people perished due to influenza andstarvation. Conclusion : As a result nationalist movements grew in the country.