AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Britain's struggle to recapture the Indian market and its heavy war debts were both direct consequences of the First World War.
Connection to the war: While Britain was preoccupied with fighting, industries developed in India and Japan, eroding Britain's market dominance. Simultaneously, to finance war expenditures, Britain borrowed heavily from the US, leaving it burdened with huge external debts after the war.
What this reveals: Being the world's leading economy during a major conflict is enormously costly — a nation must fund massive war expenditures (creating debt) while its economic rivals advance unchallenged, making post-war recovery doubly difficult.
Source: Chapter 3, Section 3.2 — Post-war Recovery
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The examiner wants you to link both problems — loss of market share AND external debt — explicitly back to the war. Don't treat them as separate facts; show they are caused by the war. The final insight about the "cost" of being a leading economy is the evaluative/analytical mark — always address the "what does this reveal" part of such questions.