Indian Entrepreneurship in Historical Perspective
A Re- interpretation
Dwijendra Tripathi
The role of entrepreneurs in Indian economic development has been understated in favor of
sociological factors or British policies. This paper argues for a more balanced view. Historical
shifts, like the adaptation of the Hindu value system to allow non-business classes into industry,
demonstrate how cultural and religious norms evolve due to changing circumstances.
Entrepreneurship arises from the gap between perceived opportunities and their exploitation.
While traditional mercantile classes held sway, they didn't substantially innovate. Scholars like
Max Weber attribute this to negative aspects of the Hindu value system, but this perspective
oversimplifies, ignoring complex forces that shaped Indian entrepreneurship till the 19th century.
The complex evolution of Hindu entrepreneurship challenges the notion that it was strictly bound
by religious values and caste norms. Hinduism, with its diverse sects and beliefs, defies a
singular value system. The Weberian interpretation, which emphasizes religion's impact on
economic behavior, is insufficient to explain the intricate history of Hindu entrepreneurship.
Historically, various Hindu communities occupied different economic roles. The Brahmins, often
associated with religious pursuits, occasionally engaged in commerce under changing
circumstances. For instance, Dwarkanath Tagore, a Brahmin, ventured into business during the
19th century due to exposure to Western ideas and changing economic horizons, indicating the
influence of external factors.
The Parsees, who assimilated British culture, defied traditional norms and played a crucial role in
early Indian entrepreneurship. Cowajee Nanabhoy Davar and J.N. Tata established successful
ventures in textiles and steel, respectively. Their successes were driven by factors like
technological innovation, managerial expertise, and favorable economic conditions, rather than
religious values.
Other Hindu communities like the Vaishyas and Jains exhibited delayed entrepreneurial
initiatives. They entered the industrial sector only when external factors, such as the demand
created by World Wars and government policies, provided inducements. Their participation
indicated that religious values were not the sole determinants of economic decisions.
Moreover, the post-independence era witnessed a surge in Indian entrepreneurship, showcasing
the impact of changing economic circumstances and government policies. Established business
groups diversified and new entrants from various castes embraced entrepreneurship,
transcending traditional barriers.
In essence, the history of Hindu entrepreneurship is a result of a dynamic interplay between
changing economic environments, exposure to new ideas, technological advancements, and
government policies. While religious values and caste affiliations played a role, they were only
part of a broader tapestry that shaped entrepreneurial behavior. This nuanced perspective
challenges the oversimplified view that religious values solely determined business actions in
Hindu communities.
Submitted by- Ankit Tiwari
DPM11.008