Question

What was the Peculiarity of indian economy during first world war?

Answer 1

1. Decline of Manchester : The British mills became engaged with war production to meet the needs of the army. Hence, Manchester imports into India started to fall.
2. Increase in demand : With the decline of imports abruptly, new routes opened for Indian mills. They had a vast home market to supply.
3. Demand from army : As the War prolonged. Indian factories were engaged to supply war needs;i.e.. jute bags, army uniforms, tents and leather boots, horse and mule saddles, and a host of other items. Indian factories started to gain.
4. New factories : New factories established and old ones started to run in multiple shifts. Many new workers were employed, and everyone was made to work for longer hours. The war year served as a boon for industrial production in India.
5. Downfall of British industry and boon for home industry : After the war Manchester lost its previous position in the Indian market. Britain failed to modernise and compete with the US. Germany and Japan. The economy of Britain suffered a setback after the war. Cotton production stopped and exports of cotton cloth from Britain lost its value. Indian economy started to improve.