The First World War changed the situation. Steel produced in Britain was being utilized to meet the demands of the war. As a result, the Indian Railways turned to TISCO for supply of rails.

(a) Steel produced in Britain now had to meet the demands of war in Europe. So, imports of British steel into India declined.

(b) The Indian railways turned TISCO for supply of rails.

(c) As the war dragged on for several years, TISCO had to produce shells and carriage wheels for the war.

(d) By 1919 the colonial government was buying 90% of the steel manufactured by the TISCO.