Small-scale Industries Predominate
The period following World War I witnessed a gradual but steady growth of factory industries in India; however, they still formed only a small segment of the overall industrial landscape. By 1911, about 67% of the industrial sector was concentrated in Bengal and Bombay, while the remaining regions primarily consisted of small-scale production. Only a minor portion—5% in 1911 and 10% in 1931—of the total industrial workforce was employed in registered factories, which indicates a continued reliance on small workshops and household industries.
Interestingly, some handicrafts saw an expansion in the 20th century—an unusual outcome amidst factory growth. This was notably true for the handloom sector, which managed to thrive despite the initial negative effects of machine-made thread. Enduring craftsmanship allowed weavers to survive and even flourish, with handloom production nearly tripling between 1900 and 1940. Factors contributing to this resilience included technological innovations such as the introduction of fly shuttles, which significantly boosted productivity, and the ability of weavers to produce intricately designed fabrics resistant to mass production imitation.
The distribution of production varied: while coarse woven fabrics suffered volatility in demand corresponding to economic fluctuations, finer textiles maintained a more stable market presence due to their appeal to wealthier consumers. Thus, handloom weaving and small-scale industrial units remained vital components of the Indian economy, highlighting the dynamic interplay between traditional artisan skills and emerging industrial structures.