The First world war created a dramatically new situation for the Indian industries.
i. With the British mills busy with war production to meet the needs of the army, Manchester imports into India declined.
ii Indian mills had a vast home market to supply.
iii. As the war prolonged Indian industries were called upon to supply war needs like, jute bags, cloth for army uniforms, etc
iv. New factories were set up and old ones ran multiple shifts.
v. Many new workers were employed and everyone worked for longer hours.
vi. Over the war years industrial production boomed.
vii Manchester could never recapture its old position in the Indian market.
viii Cotton production collapsed and exports of cotton cloth from Britain fell dramatically. Local industries consolidated their position capturing the home market.