Economic development is a continuous process. All countries usually meet with different problems of economic development at different stages. They will bring forward some Economic Policy with their different political and economic background to solve the economic problems at that time. Putting the economic policy into effect has to be the definite subject and focus to take proper action on certain sectors. In recent years the fashion industry has grown into a very large business. British ready-to-wear garments are considered the best in the world. The causes of the development of the British fashion industry have not so far been fully explored by fashion historians; particularly in relation to the effects of the restrictions imposed on fashion by the Second World war. Consequently, in this dissertation, I have researched into as much of the available information as possible in an effort to explain why the fashion industry is such an important part of our economy. The international implications of the involvement of couturiers with the ready-to-wear industry as a result of the War, have also been outlined.