Question

Describe the impact of the First World war on Indian industries.

Answer 1

Till the First World War, industrial growth in India was slow. The war created a dramatically new situation. Manchester imports into India declined due to the war. The British factories became busy with producing things needed for the army. Indian mills now suddenly had a large market to supply. The long war made the Indian factories supply them with jute bags, cloth for army uniforms, tents and leather boots, horse and mule saddles, and a host of other items. Many workers were employed for longer hours.

After the war Manchester goods lost their hold on the Indian markets. British economy collapsed as it could not compete with the USA, Japan, and its European rivals. The Indian industrialists captured the local market. Small scale industries prospered

Answer 2

Britain which was a leading economy of the world before the First World War faced a prolonged crisis

(i) While Britain was pre-occupied with war, industries had developed in Japan and India. After the war, Britain found it difficult to

recapture its earlier position.

{ii) Britain has borrowed liberally from the USA for its war time expenditure, thus at the end of the war, Britain was burdened with huge external debt.

(iii) After the war, production contracted which led to huge job losses. In 1921, one in every

five British workers was out of work. Anxiety and uncertainty about work became an ,

enduring part of the post-war time.