Economic Impact of World War I on India:

1. Industrial Growth: Increased demand for goods led to boosted production in industries like textiles, jute, and steel, contributing to industrial growth.

2. Agricultural Upsurge: Initially, agriculture flourished due to heightened demand for food supplies, resulting in higher prices and improved rural incomes.

3. Inflation and Price Rise: The surge in demand caused inflation, escalating prices and affecting the urban poor adversely.

4. Fiscal Strain: India faced a heavy fiscal burden due to war expenses, leading to increased taxation and borrowing to support the war effort.

5. Trade Disruption: Global trade disruptions during the war affected India’s imports and exports, impacting trade and commerce.

6. Post-War Recession: After the war, reduced demand for goods led to a post-war recession, causing unemployment and economic slowdown.

World War I had mixed economic effects on India, initially stimulating growth in certain sectors but ultimately leading to challenges like inflation, fiscal strain, trade disruptions, and post-war recession.