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

Explanation

The outbreak of the First World War had created a new economic and political situation in India: (i) The increased defence expenditure was financed by war loans and by raising tax rates, custom duties, etc3 There was tremendous price rise during the war years. Between 1913 and 1918, the prices had älmost doubled. People, particularly common people, were facing extreme hardships. (ii) Forced recruitment in the army caused widespread anger in the villages. (iii) The failure of crops in many parts of India had created food shortages, leading to the added misery of the people. (iv) In addition to this, there was the outbreak of the great influenza epidemic. Millions of people perished due to influenza and starvation. (v) The nationalist movement grew stronger during the war years. A large number of Muslims were drawn into the anti-British struggle during the war. The defence of the .Caliphate. (Khilafat) became an important question for Muslims. Peasant movements during war period also had helped the nationalist movement to grow stronger.