Industrial prices nearly doubled in the six years after 1914. Accelerating prices benefitted Indian industry. Farm prices rose as well, but at a slower pace than industrial prices. The internal terms of trade(ratio of export prices to import prices) moved against agriculture.
How did ww1 affect India’s economy?
The First World War made an impact on the Indian economy in several ways: the prices of agricultural produce increased considerably, the silver currency appreciated by leaps and bounds, the industrialists benefited from windfall profits to such an extent that they were overcome by a veritable euphoria of investment …
What was the impact of the World War 1 on India?
(i) The war created a new economic and political situation. (ii) It led to huge increase in defence expenditure which was financed by war loans and increasing taxes, custom duties were raised and income tax was introduced. (iii) Prices increased, doubling between 1913 and 1918. This hit the common people.
What were the great economic causes in India after first world war?
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.
What were the economic changes during ww1?
The economy (in terms of GDP) grew about 7% from 1914 to 1918 despite the absence of so many men in the services; by contrast the German economy shrank 27%. The War saw a decline of civilian consumption, with a major reallocation to munitions.
What was the political and economic condition of India during the 1st World war?
i The First World War created a new economic and political situation in India. It led to huge increase in defence expenditure which was Financed by war loans and increasing taxes custom duties were raised and income tax was introduced. ii Prices increased doubling between 1913-18. This hit the common people.