Business and Politics in Colonial India

- Group 3

Colonial India- Business and Politics

In early 1900s INC was more like a political pressure group than a symbol of burgeoning nationalism. Indian Industrial Conference estb. In 1905 acted in tandem with INC to promote Indian industry Conference provided money and in return INC promoted industrial interest

Gandhijis heroic success and the method adopted against racial discrimination in South Africa attracted Indian politicians and industrialists as well. Emphasis on gram Swarajya, advocacy of cottage/small-scale industry, abrogation of wealth appreciated but not executed soon due to absence of coercion. Physical proximity to Jain and Vaishnava banias apart from adoption of their ethos won their reverence for him.

Government was keen to retain the goodwill of indian big business, interest group representation in legislature was to prevent unison against the government. Refusal of govt. to lower the import duty on Manchester goods in 1920 despite pressures. Govt. did support European interests to create an unbiased image of itself. In a quest to maintain equidistance from government and congress , even Birla adopted a dual role of supporting English in front of bapu and bapu before English. An unofficial mediator between congress leaders and ruling authorities, enjoyed leverage.

Four-pronged Industry strategy:

Keep a distance from confrontationalagitational aspects of freedom struggle. Fund indirect programmes of the congress Influence policy formulation by the congress to fine-tune with the thought process with that of their own. Garner support for industry demands by acting in unison with nationalistminded legislature members.

Growing Congruence of Purpose

Impact of the Non-Cooperation movement of 1921 Indifference posture of majority of industrialists Stance of Purushotam das support of cotton traders to the agitation Industrialists contested elections as independents rather than on behalf of Swaraj party Collaboration between industrialists and Swarajists within the assembly on issues like

Purchase of requirement of armed forces Safeguards to protect indigenous match industry Countervailing excise duty on Indian textile production Bold speeches by Kasturibhai and others to repeal the measures supported by nationalists

Contd..

Protection for Indian industry another key issue which united the industrialists and nationalists Strong sentiments of Indian members of assembly reflected in the fight for raising the duties on imported piece-goods
Competition from Japan on imports of medium varieties Governments rejection of the recommendations aroused the ire of all the elected members of the assembly Forceful speeches and walkout from the assembly

Opposition on the high value of rupee both industrialists and political factions had common cause against the government on matters affecting Indian economy

The schism between Indian business and British expatriates widened further as a result of frequent clashes in legislature Industrialists had an open line of communication with Gandhi about his activities through regular meetings and exchange of letters Financial support offered by Industrialists to the activities of Gandhi Formation of All India Trade Union Congress(AITUC) The 1920s on a whole witnessed a growing congruence between Congress and Indian Capital class

Responding to civil disobedience

After civil disobedience movement, industrialist felt that , open confrontation between Govt and congress , will hurt their economic prospects . Birla wrote to Gandhiji To meet british government and pleaded him not to miss the oppurtunity. Whereas Gandhiji refused to go to london and marched towards Dandi. For Dandi movement , little concrete support came from the industrialists. Purshotamdas Thakurdas remained skeptical of Gandhi methods. Industrialists felt that self government as the only solution to Indias economic ills. During quieter times ,they could shout support for the congress position without burning bridges with the authority.

Civil Disobedience

Birla acting as mediator between British and Gandhi Business pressure played crucial role in bringing about Gandhi-Irwin pact Fixing the rupee-sterling ratio and tie down of Indian currency with pound deterred industrialists ambitions Nehrus socialist propaganda worried capitalists, who however were soothed by Gandhis stand for industrial prosperity

Second World War

Dual policy of Indian industrialists Support war efforts along with expressing sympathy for national movement Anxiety to draw closer to the congress Formation of National Planning Commission(NPC) ,member refused to pay a small sum Bombay Plan, a road plan for the development post world war

Attitude towards Partition

G. D. Birlas letters to Gandhi in support of Pakistan An alternative to Pakistan Ardeshir Dalal Loose federation with a weak central authority as an alternative to Pakistan. Lala Lajpat Rai and V. D. Sawarkar also supported the two nation theory. Majority of businessmen were against partition because of emotional reasons but never came out to oppose because they never believed partition would actually happen.

Thank You