- Many factories were set up after the war.
- Large industries were only a small part of the economy. Most of these industries were located in Bengal and Bombay.
- Small-scale production predominated over the rest of the country,
- Most of the labour force was employed in small workshops and household units.
- Handicrafts production actually expanded in the twentieth century.
- Hand-loom cloth production also increased in the 20th century.
Reasons for the boom in the handicraft Industry
- Handicrafts people adopted new technology and increased production without pushing up costs.
- Weavers used looms with a fly shuttle and increased productivity per worker.
- Several other small innovations helped weavers improve their productivity and compete with the mill sector.
- Some weavers produced coarse cloth while others wove finer varieties; there was demand for both the varieties.
- The hand-loom weavers thrived as mills could not imitate specialised weaves.
- Saris with woven borders, or the famous lungis and handkerchiefs of Madras, could not be easily displaced by mill products.
- In spite of the boom in the handicraft sector many workers still experienced poverty.