The Indian armed forces served in many regions and fought in various theatres. The most severe loss was in Malaya. In this theatre as well as in others, the Indian Army's total casualties came to 175,000 officers and men, of which the killed in action came to about 20,000.
Drawing up the balance sheet, the war in its economic consequences for India, on the asset side, gave spurt to industry, increased employment and added to financial solvency. On the liability side, the picture was none other than gloomy.
An objective estimate of the economic effects of the war will not omit the unbearable sufferings of the poor and the lower middle classes. The war also introduced tremendous social changes, not always healthy.
There was a perceptible setback in output, and the old established industries dwindled because of the over-straining of their machines. But these consequences became apparent later.
