What was the attitude of Indian industrialists towards the Indian National Congress in the pre-independent era?
The Industrialist class which emerged in the later half of the 19th century had a cordial relationship with the Congress. Their association can be divided into three phases:
First phase, 1855-1905 :
During this period, they were very much a part of INC and supported some of their demands, while criticizing the drain of wealth from India to England.
- Use of indigenous capital instead of foreign capital, etc.
- Their cooperation led to the success of Swadeshi Movement.
Second phase, 1905-1930 :
During this phase, the Non-Cooperation Movement of Ghandhiji received much needed support from the industrialists.
Another reason for their grievance was the fixing of rupee-pound sterling ratio to their disadvantage.
Third phase, 1930-1947:
In the third phase, the capitalist class grew rapidly, increasing its strength and self confidence. This was achieved primarily through import substitution by edging out or encroaching upon areas of European domination, and by establishing almost exclusive control over new areas thus accounting for the bulk of the new investments made since the 1920s.
Close to independence, indigenous enterprise had already cornered 72% or 73% of the domestic market and over 80% of the deposits in the organised banking sector. The increasing radicalisation of the Congress, with the growing influence of Nehru, spurred the capitalist into becoming more active in the political field.
The fear of radicalisation of the national movement did not discouraged them. The prime motive of this class was the prosperity of their business, they were not against the freedom movement.
They supported Congress many times and also took its support. They realised that an Indian government is necessary for the industrial progress of India, but they were opposed to militant and revolutionary activities of the freedom fighters.