MP Board · Class 10 · Social Science · History: The Making of a Global WorldWhat was the impact of the First World War on the British economy?

The First World War severely damaged the British economy. While Britain was preoccupied with the war, industries developed in India and Japan. After the war, Britain struggled to recapture its dominant position in the Indian market and compete with Japan internationally. Britain was also burdened with huge external debts, primarily to the United States, leading to economic decline.