How did industrial production in India increase during the First World War? Explain: What were its effects?

(a) Industrial production in India increased during the First World War because the
British mills were busy with war production to meet the needs of the army. As a result of this,
Manchester imports i.e., goods produced in Manchester, into India declined. The demand in the home market could not be met by British imports. Thus, the Indian factories were called upon to supply war needs i.e., jute bags, cloth for army uniforms, tents and leather boots, horse and mule saddles and other items. New factories were set up. Multiple shifts were run in the factories. A large number of new workers were employed and they were asked to work for extra-hours.
All this led to increase in industrial production during the First World War.
(b) Effects: (i) In Britain cotton production collapsed and export of cotton cloth fell dramatically.
(ii) As Britain was unable to modernise and compete with the US, Germany and Japan, British economy crumbled.