Source: Textbook

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

Model Answer

Industrial production in India significantly increased during the First World War due to critical shifts in global economics. Firstly, British mills were redirected to wartime production, drastically reducing the import of manufactured goods, particularly textiles, into India. This created an unprecedented opportunity for Indian industries to fill the vacuum and cater to a vast domestic market previously dominated by British imports. Secondly, the war generated immense demand for military supplies. Indian factories rapidly diversified, producing essential items such as jute bags, army uniforms, tents, and leather boots. This surge in demand stimulated a production boom, leading to the establishment of new factories and the expansion of existing ones. This period enabled Indian industries to consolidate, accumulate capital, and expand their market presence, fostering substantial growth.