The best answer for explain the effects of First World War on India.
(i) The war created a new economic and political situation.
(ii) It led to huge increase in defence expenditure which was financed by war loans and increasing taxes, custom duties were raised and income tax was introduced.
(iii) Prices increased, doubling between 1913 and 1918. This hit the common people.
(iv) Villagers were asked to supply soldiers and through force recruitment in rural areas.
(v) During 1918-19, crops failed in many parts of India which created shortage of food.
(vi) Spread of influenza epidemic and death of 12 to 13 million people.