Question

"A rapid development took place in Indian industry during the First World War." Elaborate the reasons for the same.

Answer 1

Instructions: Explain the following points:

• Between 1914 and 1918, the import of foreign goods into India reduced.
• Indian factories started selling their goods in large quantities during the war.

Solution:

• Between 1914 and 1918, the import of foreign goods into India reduced because of following reasons:
  1. Shortage of ships as most of the cargo ships were on war related duties.
  2. In European factories, things needed for the war were being made and such items were not meant for Indian markets.
• It was during the First World War, Indian factories started selling their goods in large quantities. As the sales increased, there was a rapid development of industries.
• After the war ended, Indian industrialists began demanding that the government should levy a tax on foreign goods in order to boost sale of Indian goods.
• The government accepted this demand and after 1917, taxes were levied on many foreign goods, and the Indian factories developed speedily.