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Bad White [126]
3 years ago
12

What economic impact did the first world war have on India

History
1 answer:
a_sh-v [17]3 years ago
3 0

Both World Wars had directly impacted economy of India, the reason we do not relate these wars for our impoverishment is that we had not participated in those wars directly, like we had in 1965, 1971 etc ( we look at a perspective for World Wars as British India not India)

First World war caused India to go nearly bankrupt and high casualties (half million people from India volunteered from India)

It led to the increase of huge rise in defense expenditure of British India, which in turn increased taxes from masses, with minimum left in hands for spending.

Less spending amount in turn affected handicrafts, artisans business and profitability where masses couldn’t afford much as their purchasing power had decreased gradually.

Great Depression 1929, mainly thought to caused due to war which also had its implications on Indian Economy.

British in order to increase exports, burdened artisans and handicraftsmen, where as over crowding Indian markets with cheap Manchester cloths and industrial made spindles.

Very high inflation

As agricultural sector crippled, sea trade was directly affected, in turn advocating the impoverishment of merchants.

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