(i) Indian entrepreneurs found opportunities to expand and grow. During the First World War (1914-18) some Marwari businessmen from Calcutta, like G.D. Birla and Swarupchand Hukumchand invested in the jute industry. Gradually, their control started expanding into other areas like coal mines, sugar mills and paper industry, and they could even buy up some European companies.
(ii) The greatest success of the Indian capital took place in the cotton industry in western India, which took advantage of high demands during the war years to consolidate its successes.
(iii) Certain traditional trading communities like Gujarati Banias, Parsis, Bohras and Bhatias became important in this sector.
(iv) The Tata Iron and Steel Company under government patronage provided leadership to the fledgling iron and steel company of India.
(v) Links with the foreign market were re-established after the First World War. But during the depression years (1929-1933), the domestic market became relatively free to be exploited by indigenous industry, as foreign trade declined.
(vi) The colonial government also provided some protection to the sugar and cotton industries, in the face of falling prices in the agricultural sector. Low prices forced capital from land into the manufacturing sector.
(vii) Indians also ventured into the field of insurance and banking.
(viii) During the Second World War (1939- 45) as foreign economic influence declined, Indian entrepreneurs managed to make huge profits. With its limited success, the Indian capitalist class strengthened their links with the nationalist movement. They soon started demanding the establishment of heavy industries under state ownership and started organising themselves to resist the entry of foreign capital.
