The First World War created a new economic and political situation.
• It led to a huge increase in defence expenditure which was financed by war loans and increasing taxes
• customs duties were raised and income tax introduced.
• Through the war years prices increased - doubling between 1913 and 1918 - leading to extreme hardship for the common people.
• Villages were called upon to supply soldiers, and the forced recruitment in rural areas caused widespread anger.
• Then in 1918-19 and 1920-21, crops failed in many parts of India, resulting in acute shortages of food.
• This was accompanied by an influenza epidemic.
• According to the census of 1921, 12 to 13 million people perished as a result of famines and the epidemic.
• People hoped that their hardships would end after the war was over. But that did not happen.

The First World War had a significant impact on India and its nationalist movement. Some of the effects include:

1. Economic impact: India's contribution to the war effort was significant, with troops, resources, and funds being sent to support the British Empire. This led to a drain on resources and a decline in the Indian economy.

2. Rise of nationalism: The war created a sense of disillusionment and resentment among Indians towards the British Empire, who they felt were exploiting their resources and manpower for their own benefit. This led to a rise in nationalist sentiments and movements, with leaders such as Mahatma Gandhi and Jawaharlal Nehru emerging as prominent voices in the struggle for independence.

3. Emergence of new political trends: The war also led to the emergence of new political trends in India, such as the rise of the Muslim League and the demand for a separate Muslim homeland.

4. Montagu-Chelmsford Reforms: The war also played a role in the Montagu-Chelmsford Reforms of 1919, which introduced a limited form of self-government in India.

Overall, the First World War played a significant role in shaping India's nationalist movement and its struggle for independence from British rule.