The First World War had a major impact on the Indian economy, both in the short and long-term. This article will explore the pre-war economy of India, the changes that occurred during the war, and the long-term effects on the Indian economy.
India’s Pre-War Economy
Prior to the outbreak of World War I, the Indian economy was mainly agrarian, with over 70% of the population engaged in agricultural activities. The majority of the population was subsistence farmers, and the country was heavily reliant on imports for manufactured goods. The Indian economy was characterized by stagnation and low growth, with little investment in infrastructure or industry.
India’s Post-War Economy
The war had a major impact on the Indian economy, both in the short and long-term. In the short-term, the war led to an increase in government spending and the creation of new industries. This increased demand for goods and services led to an increase in production and employment, leading to an overall improvement in the Indian economy. The war also led to a shift in the balance of power, with the British Empire becoming more reliant on India for resources and manpower.
In the long-term, the war had a lasting impact on the Indian economy. The increased government spending and investment in infrastructure and industry led to an increase in economic growth and development. Additionally, the war led to the introduction of new technologies and industries, which would eventually become the cornerstone of the Indian economy.
Overall, the First World War had a major impact on the Indian economy, both in the short and long-term. In the short-term, the war led to an increase in government spending and the creation of new industries. In the long-term, the war had a lasting impact on the Indian economy, leading to an increase in economic growth and development.