The First World War (WWI) had a major effect on the economic landscape of India, which was then a part of the British Empire. The war disrupted India’s trade relations with the rest of the world, caused a shortage of goods and services, brought about a rise in prices, and caused a significant drop in the country’s GDP. This article will discuss the economic impact of WWI on India and its consequences.
Economic Impact of WWI on India
WWI had a major impact on India’s economy. The war caused a disruption in India’s trade relations with other countries, leading to a shortage of goods and services. Additionally, the war led to a rise in prices of essential goods, as well as a significant drop in the country’s gross domestic product (GDP).
WWI also caused a disruption in the money supply in India. The war led to a decrease in the availability of gold and silver coins, as well as a decrease in the number of notes in circulation. This caused a decline in the purchasing power of the rupee.
WWI also caused a disruption in the agricultural sector of India. The war led to a decrease in the availability of agricultural inputs, such as fertilizer and machinery, as well as a decrease in the production of food grains. This led to a rise in food prices, which had a negative impact on the country’s economy.
Consequences of WWI on Indian Economy
The economic impact of WWI had a number of consequences on the Indian economy. Firstly, the war caused a decrease in the country’s GDP, as well as a decrease in the purchasing power of the rupee. This led to a decline in the standard of living of the people.
WWI also caused a decrease in the availability of essential goods and services, as well as a rise in the prices of those goods and services. This had a negative effect on the people’s standard of living.
WWI also had a negative impact on the agricultural sector of India. The war led to a decrease in the availability of agricultural inputs, as well as a decrease in the production of food grains. This led to a rise in food prices, which had a negative effect on the country’s economy.
WWI had a major impact on the economic landscape of India, causing a disruption in its trade relations with other countries, a decrease in the money supply, a decrease in the availability of essential goods and services, and a rise in prices. The war also had a negative impact on the agricultural sector of India, causing a decrease in the production of food grains and a rise in food prices. The economic consequences of WWI had a negative effect on the standard of living of the people of India.
