What Economic Impact Did The First World War Have On India?

The First World War (WWI) had a massive impact on the global economy, and India was no exception. WWI changed the economic landscape of India, with both positive and negative consequences. This article will explore the economic impact of WWI on India, looking at the outbreak of the war, the changes in India’s economy, and the long-term implications.

The Outbreak of WWI

WWI began in 1914, when the Austro-Hungarian Empire declared war on Serbia. This led to a series of alliances and declarations of war between the major powers. India was part of the British Empire at the time, so when Britain declared war on Germany in August 1914, India was automatically involved.

India was a major contributor to the war effort, providing men and resources to the Allied forces. The Indian Army sent over 1.3 million soldiers to fight in the war, and India also provided food, clothing, and other supplies to the Allied forces.

India’s Economic Impact

The economic impact of WWI on India was significant. India’s economy was heavily dependent on the British Empire, so when the war began, India was quickly drawn into the conflict. India’s economy suffered as a result of the war, with high inflation, reduced trade and investment, and a sharp decline in agricultural production.

WWI also had a major impact on India’s political landscape. The war led to increased nationalism in India, which eventually led to the Indian independence movement. This movement eventually resulted in India’s independence from the British Empire in 1947.

WWI also resulted in a number of economic reforms in India. These reforms included the establishment of the Reserve Bank of India, the introduction of the Indian currency, and the introduction of income tax.

The war also had a major impact on India’s infrastructure. The war led to increased investment in India’s infrastructure, with the construction of roads, railways, and other infrastructure projects. This investment helped to lay the foundations for India’s modern economy.


WWI had a major impact on India’s economy, with both positive and negative consequences. The war led to increased nationalism, economic reforms, and infrastructure investment in India. These changes had lasting implications for India, and helped to shape the modern economy.

WWI had a profound impact on India, both economically and politically. The war changed the economic landscape of India, and laid the foundations for the modern economy. While the war had its share of negative consequences, it also had a number of positive impacts, including

Must Read

Related Articles