Economic Consequences of War in India

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Questions and Answers

What led to the increase in defence expenditure during the war?

  • Decreased prices
  • Foreign investments
  • War loans and increasing taxes (correct)
  • Reduction in taxes

Prices in India decreased during the war years from 1913 to 1918.

False (B)

What major health crisis accompanied the food shortages in India during 1918-21?

influenza epidemic

Between 1913 and 1918, prices in India nearly _____ for the common people.

<p>doubled</p> Signup and view all the answers

Match the following events with their consequences:

<p>Forced recruitment = Widespread anger in rural areas Crops failing = Acute food shortages Influenza epidemic = Death of millions War loans = Increased defence expenditure</p> Signup and view all the answers

What was one major economic consequence of the war in India?

<p>Rise in defense expenditure (C)</p> Signup and view all the answers

What factor contributed to the widespread anger in rural areas during the war?

<p>Forced recruitment of soldiers (A)</p> Signup and view all the answers

What impact did the combination of crop failures and the influenza epidemic have on the population according to the 1921 census?

<p>12 to 13 million deaths (A)</p> Signup and view all the answers

During the war years, how much did prices increase by between 1913 and 1918?

<p>By doubling (A)</p> Signup and view all the answers

How were the defense expenditures primarily financed during the war?

<p>By raising customs duties and income tax (C)</p> Signup and view all the answers

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Study Notes

Economic Impact of War

  • War generated a new economic and political landscape in India.
  • Significant increase in defense spending during this period.
  • Financing sourced from war loans and higher taxes, such as enhanced customs duties and the introduction of income tax.

Price Inflation and Hardships

  • Prices doubled between 1913 and 1918, leading to severe economic difficulties for the population.
  • Increased financial burden faced by common people due to rising living costs.

Recruitment and Social Unrest

  • Villages were mandated to supply soldiers, leading to forced recruitment.
  • Rural areas experienced widespread anger due to conscription policies.

Agricultural Crises and Famine

  • Crop failures occurred in India during 1918-19 and 1920-21, leading to acute food shortages.
  • The agricultural crisis was exacerbated by an influenza epidemic during the same period.

Humanitarian Consequences

  • Census data from 1921 indicates that 12 to 13 million people died due to famine and the influenza epidemic.
  • The combination of war, famine, and disease significantly impacted population and societal stability.

Economic Impact of War

  • War generated a new economic and political landscape in India.
  • Significant increase in defense spending during this period.
  • Financing sourced from war loans and higher taxes, such as enhanced customs duties and the introduction of income tax.

Price Inflation and Hardships

  • Prices doubled between 1913 and 1918, leading to severe economic difficulties for the population.
  • Increased financial burden faced by common people due to rising living costs.

Recruitment and Social Unrest

  • Villages were mandated to supply soldiers, leading to forced recruitment.
  • Rural areas experienced widespread anger due to conscription policies.

Agricultural Crises and Famine

  • Crop failures occurred in India during 1918-19 and 1920-21, leading to acute food shortages.
  • The agricultural crisis was exacerbated by an influenza epidemic during the same period.

Humanitarian Consequences

  • Census data from 1921 indicates that 12 to 13 million people died due to famine and the influenza epidemic.
  • The combination of war, famine, and disease significantly impacted population and societal stability.

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