Which of these were the impacts of the First World War on the Indian industries?

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Decline of British industry, and boom of Indian industry

Increased demand in home market

Both 1 & 2

None of the above

answer is C.

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Detailed Solution

The First World War resulted in increased demand in the home market, a decline in British industry, and a boom in Indian industry.
Since the mills in England were busy fulfilling their war and army demands, the imports into India declined. As a result, the mills in India got a huge home market to supply to. This led to an increase in sales of Indian products in the market. To meet the war demands of the British and home market, new factories were established, and employment grew. After the war, production in England collapsed, and exports declined dramatically. Thus, due to the war, industrial production in India boomed.

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