World War I, was a global war originating in Europe that lasted from 28 July 1914 to 11 November 1918.

India witnessed increased industrial production during the First World War due to the following reasons:

• British industries became busy producing and supplying war needs.
• The increased demands for a variety of products led to the setting up of new factories and old ones increased their production.
• British industries became busy producing and supplying war needs.
• Hence, they stopped exporting British goods or clothes for colonial markets, for instance in India.
• It was a good opportunity for Indian industries to fill in empty Indian markets with their products.
• Therefore, industrial production in India increased.
• Also, the British colonial government asked Indian factories to supply the war needs like - jute bags, cloth or army uniforms, tents and leather boots, horse and mule saddle, etc.
• The increased demands for a variety of products led to the setting up of new factories and old ones increased their production.
• Many new workers were employed and everyone was made to work longer hours.

Hence, the correct answer is Indian industries expanded as war created a demand for industrial goods.

The First World War created a different situation in India.

• It led to a huge increase in defense expenditure which was Financed by war loans and increasing taxes custom duties were raised and income tax was introduced. 
• Prices increased doubling between 1913-18. This hit the common people. 
• During 1918-19 crops failed in many parts of India which created a shortage of food. 
• After the First World War, the political parties became more active.
• The Indian National Congress associated with Gandhi, who remained its unofficial spiritual leader and icon.