Answer:
The First World War created a new political and economic situation in India. (i) It led to huge increase in defense expenditure, Custom duties were raised,income tax was introduced to finance the war. (ii) Villagers were called upon to supply soldiers, forced recruitment in rural areas caused widespread resentment.
There was very low economic growth during this time, along with an unsettle financial system and mild deflation. This was all due to the Great Depression and the First World War.
The answer to the question is True
It stifles competition, leading to an overall worse product. Hope this helps!
