Three facts about the new economic situation created in India by the First World War were:
1. The defence expenditure was financed by the war loans, the increased taxes, raising the custom duties and introducing the income tax and increased prices of the commodities which caused economic hardship for the common people.
2. For the continuous supply of the soldiers the villages were called upon and recruitment was done forcefully.
3.There was a period of crop failure in many parts of the country which caused acute food shortages and millions of people perished due to the famine and the epidemics.