Question

Mention any two economic impacts of the First World War on India.

Answer 1

• Rapid inflation and food shortages: Prices in India roughly doubled between 1913 and 1918, causing severe hardship for ordinary people and contributing to shortages and famines in the immediate post‑war years.
• Industrial expansion and shift in markets: With British mills busy in war production, Indian factories expanded to supply war needs (jute bags, uniforms, tents, etc.), boosting industrial production and employment and allowing Indian mills to capture much of the home market.