THE First World War created a new economic and political situation :\tIt led to a huge increase in defence expenditure which was financed by war loans.\tTaxes were increased, custom duties were raised and income tax was introduced.\tThrough the war years, prices increased doubling between 1913 and 1918 leading to hardship for the common people.\tForced recruitment in rural areas caused widespread anger.\tThe failure of crops in many parts of India had created food shortages, leading to the added misery of the people.\tThere was the outbreak of the great influenza epidemic. Millions of the people perished due to influenza and starvation.\tThe Nationalist Movement grew stronger during the war years.