Industrial production in India increased during the First World War (i) British mills became busy with war production and Manchester imports into India declined. (ii) Suddenly Indian factories had a vast home market to supply goods. (iii) Indian factories were called upon to supply war needs : jute bags, cloth for army uniforms, tents and leather boots, horse and mule saddles and a host of other items. (iv) New factories were set up and old ones ran multiple stufts. Many new workers were employed and everyone was made to work longer hours. Over the war years industrial production boomed. (v) After the war, Manchester could not recapture its old position in the Indian market. The economy of Britain collapsed after the war, cotton production and exports fell. Local industrialists in India consolidated their position, substituting foreign goods and capturing the home market.