Q. 74.3( 3 Votes )

The busines

Answer :


The business groups kept away from the political sphere of the national movement which opposed the British. World War I was an important event which led to the change in their attitude. 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.


The businesses, due to tremendous profits and expansion, were opposed to the restrictive policies of the Britishers. They wanted protection against imports of foreign goods, and a rupee-sterling foreign exchange ratio that would discourage imports. Apart from that, with the increase in political activity in the country, some of them were awakened and wished to contribute to it. They also formed the Indian Industrial and Commercial Congress in 1920 and the Federation of the Indian Chamber of Commerce and Industries (FICCI) in 1927 to support their activities.


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