Enumerate the effects of World War I on the economic and political spheres of India.

World War I was fought between Allies (Serbia, Russia, France, Britain, Italy, and the United States) against the Central Powers (Germany, Austria-Hungary, Bulgaria and the Ottoman Empire) from 1914 to 1918. The main reason was regional politics among the European nations. Its effects were felt tremendously in the colonies of these European nations which included India.

Economic effects:

1. Heavy Taxes: To meet the expenditures government in turn increased taxes on individual incomes and business profits. This deteriorated the condition of farmers.

2. Rise in Prices: Increased military expenditure and the demands for war supplies led to the rise in prices of goods and commodities which created great difficulties for the ordinary people.

3. Profit to Businessmen: On the other hand, business groups reaped enormous profits from the war as the demand for industrial goods such as jute bags, cloth and rails increased.

4. The rise of Industries: The war created a demand for industrial goods and caused a decline in imports from other countries which led to the rise of industries.

Political effects:

1. Awakening of the masses: The soldiers and warriors who returned from the war understood how the European nations were exploiting their colonies.

2. Rise of national consciousness: The support to World War I was provided by India on the promise of democracy. This promise was broken and adding fuel to the fire was the Rowlatt Act which led to the rise of national consciousness.

3. The rise of communism: World War I led to the formation of USSR which in turn became the reason for the rise of communism in India with the formation of the Communist Party of India.

4. The War also ended the myth that the British Empire cannot be defeated and raised the morale of the masses.