Which of the following statement defines the impact of First World War on India 1 Huge rise in defen...........

Modern Indian History 1905-1920

Which of the following statement defines the impact of First World War on India?

1. Huge rise in defence expenditure which led to rise in taxes.

2. Indian industries expanded as the demand for military goods increased.

3. Villages experienced shortage of farm hands, carpenters, blacksmiths and other such artisans.

4. Prices of basic commodities decreased due to expansion of trade bringing cheer to the low and middle class consumers.

Select the answer from the codes given below:

1, 2 and 4 only

1 and 2 only

1, 2 and 3 only

All of the above

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Explanation:

Fourth is incorrect i.e. Prices of basic commodities decreased due to expansion of trade bringing cheer to the low and middle class consumers.
The First World War deeply affected India though it was under the British rule at that time. The Following points state its impact
(i) The British Government raised taxes, custom duties and income taxes in India to finance the war expenditures.
(ii) Villagers and farmers were forcefully recruited in the British army.
(iii) There was a rise the prices of food and other essential things.