NCERT · Class 10 · Social Science · History: The Age of IndustrialisationHow did the First World War prove to be a boon for Indian industries?

The First World War created a dramatically new situation for Indian industries. Before the war, Manchester imports dominated the Indian market. However, with British mills busy with war production to meet the needs of the army, Manchester imports into India declined sharply. This provided a vast home market for Indian mills to supply. As the war prolonged, Indian factories were called upon to supply war needs such as jute bags, cloth for army uniforms, tents, leather boots, horse and mule saddles, and various other items. To meet this increased demand, new factories were set up, and existing ones ran multiple shifts. Many new workers were employed, and everyone was required to work longer hours. Over the war years, industrial production boomed. Even after the war, Manchester could never recapture its old position in the Indian market. The British economy crumbled as it was unable to modernize and compete with the US, Germany, and Japan. Thus, the war allowed local industrialists to consolidate their position, capturing the home market and substituting foreign manufactures.