Why did industrial production in India increase during the First World War?

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Source: Textbook

Industrial production in India increased during the First World War due to a unique set of circumstances that temporarily altered the colonial economic relationship.

  1. Diversion of British Mills: British mills became busy with war production to meet the needs of the army. This drastically reduced the import of British manufactured goods, especially textiles, into India, suddenly creating a vast domestic market for Indian industries to supply.

  2. Demand for War Supplies: As the war dragged on, Indian factories were called upon to supply war needs. They began producing jute bags, cloth for army uniforms, tents, leather boots, and many other items. This led to a boom in production and the setting up of new factories.

  3. Creation of a New Workforce: The increased demand for production meant that new workers were employed, and existing workers were made to work longer hours.

This wartime boom allowed Indian industries to consolidate their position, accumulate capital, and capture markets they were previously excluded from, leading to a significant increase in overall industrial output.

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