Correct Answer - Option 4 : Indian industries expanded as war created a demand for industrial goods.
World War I, was a global war originating in Europe that lasted from 28 July 1914 to 11 November 1918.
India witnessed increased industrial production during the First World War due to the following reasons:
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British industries became busy producing and supplying war needs.
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The increased demands for a variety of products led to the setting up of new factories and old ones increased their production.
- British industries became busy producing and supplying war needs.
- Hence, they stopped exporting British goods or clothes for colonial markets, for instance in India.
- It was a good opportunity for Indian industries to fill in empty Indian markets with their products.
- Therefore, industrial production in India increased.
- Also, the British colonial government asked Indian factories to supply the war needs like - jute bags, cloth or army uniforms, tents and leather boots, horse and mule saddle, etc.
- The increased demands for a variety of products led to the setting up of new factories and old ones increased their production.
- Many new workers were employed and everyone was made to work longer hours.
Hence, the correct answer is Indian industries expanded as war created a demand for industrial goods.
The First World War created a different situation in India.
- It led to a huge increase in defense expenditure which was Financed by war loans and increasing taxes custom duties were raised and income tax was introduced.
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Prices increased doubling between 1913-18. This hit the common people.
- During 1918-19 crops failed in many parts of India which created a shortage of food.
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After the First World War, the political parties became more active.
- The Indian National Congress associated with Gandhi, who remained its unofficial spiritual leader and icon.
