NCERT · Class 10 · Social Science · History: The Age of IndustrialisationDescribe the peculiarities of industrial growth in India during the late 19th and early 20th centuries. How did World War I change the situation?

Industrial growth in India followed a unique pattern, shaped by colonial constraints and global shifts. The peculiarities of this growth can be understood through the following points:

• Dominance of European Managing Agencies: For a long time, industrial production was dominated by European agencies like Andrew Yule and Jardine Skinner. They invested in tea and coffee plantations, mining, indigo, and jute. These were products required primarily for export rather than for sale in India.
• Focus on Yarn over Cloth: Early Indian entrepreneurs avoided competing with British (Manchester) goods in the Indian market. Since Manchester imports dominated the fine cloth market, early Indian cotton mills produced coarse cotton yarn rather than fabric. This yarn was exported to China or used by handloom weavers in India.
• Impact of Nationalist Movements: During the Swadeshi movement, nationalists encouraged people to boycott foreign cloth. This led to a shift in production. Indian industrial groups organized themselves to demand tariff protection and grants, and the production of cloth began to replace yarn production.

The Impact of World War I:

• Decline of Manchester Imports: The war created a completely new situation. British mills were busy producing goods for the war needs of the army. Consequently, Manchester imports into India declined sharply.
• Growth of the Home Market: Suddenly, Indian mills had a vast home market to supply. As the war prolonged, Indian factories were also called upon to supply war needs: jute bags, cloth for army uniforms, tents, and leather boots.
• Expansion of Production: New factories were set up, and old ones ran multiple shifts. Many new workers were employed, and everyone worked longer hours. Industrial production boomed during the war years.
• Post-War Consolidation: After the war, Manchester could never recapture its old position in the Indian market. The British economy crumbled, and local industrialists consolidated their position, substituting foreign manufactures with indigenous production.