NCERT · Class 10 · Social Science · History: The Age of IndustrialisationDiscuss the growth of the Indian industrial sector during the colonial period. How did the First World War act as a turning point for Indian industries and the role of Indian entrepreneurs?

Growth of Indian Industries and the Impact of World War I

\nThe history of industrialization in India is closely linked to the colonial trade and the resilience of Indian entrepreneurs.

1. Role of Indian Entrepreneurs:

• Early Capitalists: In the 19th century, many Indians like Dwarkanath Tagore, Jamsetji Tata, and Seth Hukumchand accumulated wealth through trade with China and the export of raw materials to Britain.
• Setting up Mills: The first cotton mill was established in Bombay in 1854. By the late 19th century, jute mills were set up in Bengal. These entrepreneurs faced stiff competition from British manufacturers but managed to carve out a space by producing coarse cotton yarn that was not imported from Britain.

2. The Impact of the First World War:

• Decline in British Imports: Before the war, Manchester imports dominated the Indian market. However, during the war, British factories were busy producing goods for the war effort (uniforms, boots, ammunition). This led to a sudden decline in imports to India.
• Boom for Indian Factories: With the decline in British imports, Indian factories were called upon to supply war needs. They produced jute bags, cloth for army uniforms, tents, leather boots, and horse saddles.
• Expansion of Production: To meet the massive demand, new factories were set up, and existing ones ran multiple shifts. Many new workers were employed, and industrial production boomed.

3. Long-term Consequences:

• Shift in Economic Power: After the war, Manchester could never recapture its old position in the Indian market. The British economy crumbled, and it could not compete with emerging industrial powers like the USA and Japan.
• Consolidation of Indian Industry: Within India, local industrialists consolidated their position, capturing the home market and demanding tariff protection and concessions from the colonial government.

Conclusion:\nThe First World War provided a golden opportunity for Indian industries to expand. It marked the beginning of the end of British industrial dominance in India and paved the way for the growth of a modern industrial class.