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    describe the impact of the first world war on indian industries

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    What economic impact did the First World War have on India?

    What economic impact did the First World War have on India?

    Byju's Answer Standard VIII History

    Effect of WW1 on Indians

    What economic... Question

    What economic impact did the First World War have on India?

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    The economic and political situation in India was altered by the First World War.

    The Colonial Government of India ended up massively increasing the expenditure for defence.

    The Colonial Government increased the taxes on business profits and individual incomes.

    Business groups of India started to insist on more opportunities for development as the Indian industries had expanded during the war.

    There was a sharp rise in prices due to Increased demands for war supplies and military expenditure, which in turn posed lots of difficulties for common people.

    Fabulous profits were reaped by business groups due to war which was completely in contrast to the situation of the common man.

    The First World War created a situation where imports from other countries into India started reducing and there was higher demand for goods like rails, cloth, jute bags.

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    Describe the impact of the First World war on Indian industries.

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    The First world war created a dramatically new situation for the Indian industries. i. With the British mills busy with war production to meet the needs of the army Manchester imports into India declined. ii Indian mills had a vast home market to supply. iii. As the war prolonged Indian industries were called upon to supply war needs like jute bags cloth for army uniforms etc iv. New factories were set up and old ones ran multiple shifts. v. Many new workers were employed and everyone worked for longer hours. vi. Over the war years industrial production boomed. vii Manchester could never recapture its old position in the Indian market. viii Cotton production collapsed and exports of cotton cloth from Britain fell dramatically. Local industries consolidated their position capturing the home market.

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    How did the First World War create a new situation for Indian industries?

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