Industrial production in India increased during the First World War because British mills became busy with tending to war needs. Manchester imports decreased, and Indian mills suddenly had a huge home market to supply. Industrial growth in India was slow but India witnessed increased industrial production during the First World War due to following reasons:

1) In this period, the textile mills of Britain began to manufacture cloth to meet the needs of the English army. Hence, imports of cloths from Manchester declined sharply. As a result, the Indian mills got the opportunity to manufacture and supply cloth for the vast home market.

2) British industries became busy in producing and supplying war-needs. Hence, they stopped exporting British goods or clothes for colonial markets like that in India.

3) It was a good opportunity for Indian industries to fill in empty Indian markets with their products. It was done so. Therefore, industrial production in India increased.

4) 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.

5) The increased demands of a variety of products led to the setting up of new factories and old ones increased their production.

6) Many new workers were employed and everyone was made to work longer hours. Thus, during the war period, the industrial production boomed in India.