The Home and the World is set in a Bengali zamindar's household during the Swadeshi years, when nationalists urged Indians to boycott British goods and revive their own industries. It is built as a set of interleaved diaries: Bimala, her husband Nikhil, and his old acquaintance Sandip each tell their side, and the same events return in different lights.
Bimala has been a devoted wife, content within the inner quarters. Nikhil, educated and liberal, wants more than a wife who worships him out of habit. He coaxes her to step out of seclusion and meet the wider world, believing that love only counts as love when it is freely given rather than enclosed by custom.
Into this opening walks Sandip, a magnetic and unscrupulous orator who leads the local Swadeshi agitation. He preaches that desire is sacred, that the strong take what they want, and that the country should be adored as a living goddess. Bimala, intoxicated by the cause and by the man, comes to see herself as that goddess and lets herself be flattered and used.
Nikhil watches the movement turn cruel. The boycott ruins small Muslim and poor traders who cannot afford the costlier homemade cloth, and Sandip's circle bullies those who resist. Nikhil keeps refusing to chant the slogans or coerce his tenants, and for this his own people and his own wife judge him weak. Pressed for funds, Bimala steals gold from her husband's safe to feed the cause, and the theft breaks something in her.
The end is sober rather than triumphant. Bimala wakes from her infatuation, Sandip's greed is exposed and he flees, and the district erupts in communal rioting stirred up by the agitation. Nikhil rides out unarmed to protect Muslim families from the mob and is brought back gravely wounded, while a young follower lies dead. The book closes on the cost of mistaking a slogan for the truth, and a household for the world.