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Very bad effect on economy because many men n women killed many injured property destroyed.
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During WW1, india flourished in business and economy terms but when the war ended, indian businessmen faced ruin as competition from british  goods resumed.
 At the outbreak of the war,india was in a relatively strong financial position. crops and export trade were good. the international trade in cotton and some food products was mostly with countries that were  part of the central powers.

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