First World War posed problems by: 1. Defence expenditure increased dramatically so it was financed by loans and raised taxes like income tax and customs duties. 2. Prices of goods almost doubled in the few years and became a huge burden for the poor. 3. Villages had to provide soldiers and there was forced recruitment for the army. 4. There was a crop failure in many parts of India so there was an acute shortage of food. 5. An influenza epidemic also spread during the same time and millions died because of the famines and epidemic.