The government raised taxes on household incomes and company profits to cover a massive increase in defence spending.
Increased military spending and demand for war supplies resulted in a dramatic increase in costs, causing tremendous hardship for the common people.
The war increased demand for industrial items like as jute bags, cotton, and rail, and reduced imports into India from other nations.
During the war, Indian industries grew, and Indian business organisations began to seek more growth prospects.
The conflict brought huge riches to business groupings.
Final answer:
The economic impacts on India by the First World War include raise of taxes, increased military spending, demand for industrial items, growth of industries, etc.