Fifteen Eighty Four

In the history of economics, the contributions of early Indian economists remain largely overlooked despite their profound impact. My work centers on the pioneering voices of these economists, particularly during the late nineteenth century, as they began to forge a distinct narrative on economic development rooted in the realities of India. This blog explores the essential themes from my book, showcasing how these economists, such as Mahadev Govind Ranade, Romesh Chunder Dutt and Dadabhai Naoroji, challenged prevailing economic paradigms and laid the foundation for modern Indian economics.

Reversing the Gaze

The narrative opens with Romesh Chunder Dutt, an Indian economist who, in the late 1860s, found himself deeply affected by the poverty he witnessed in London. Describing a family in dire distress, cramped in a small room, Dutt noted that their condition reflected a stark reality; it was an unfortunate juxtaposition to the rhetoric of British imperialism which proclaimed a civilising mission in India. Dutt questioned how a nation plagued by such poverty could claim to uplift another. The moment of “reversing the gaze,” where an Indian critiqued British society’s failings rather than the other way around, marks a significant turn in historical economic discourse.

The Backdrop of Imperialism

Dutt’s reflections occurred against a backdrop of monumental shifts. Following the Indian Mutiny of 1857, which represented one of the first organized resistance efforts by Indians against British rule, the governance of India transitioned from the East India Company to the British Crown. In this environment, the British adopted a narrative of a civilising mission, positing themselves as bringers of progress to a regressive India. However, Dutt’s observations highlighted the hypocrisy in the civilising narrative, as he cited the dire situations present even within Britain, calling into question the true nature of civilizational advancement.

The Emergence of Indian Economics

Bach traces the emergence of what would later be termed “Indian Economics” to individuals like Mahadev Govind Ranade, who initiated the use of the term in a landmark lecture at Deccan College in 1892. Ranade and his contemporaries recognised that India needed an economic framework distinct from Western models – one that would consider India’s unique historical, social, and economic contexts. This was a crucial step towards fostering an intellectual environment where marginalised economic thought could flourish.

The first generation of modern Indian economists comprised individuals who were educated in the newly established Western-style universities across India, particularly in Bombay, Calcutta, and Madras. The group, often referred to as the Early Nationalists, consisted of middle-class men who had witnessed firsthand the adverse effects of colonial policies on their economic wellbeing. Their varied backgrounds as judges, professors, and merchants enriched their perspectives on the economic challenges facing India.

Original Contributions to Economic Thought

Despite their European education, these economists produced work that transcended mere imitation of European ideas. They authored groundbreaking analyses on India’s economic evolution, critiqued colonial exploitation, and crafted potential solutions tailored to Indian circumstances. For instance, Dutt highlighted the debilitating impact of British economic policies on India’s agriculture and industry, while Ranade argued for a comprehensive understanding of the Indian economy that spanned both its historical context and current challenges.

The focus of their methodologies was to employ a comparative approach, enabling them to attain a level of authority and objectivity in their analyses. They understood that addressing India’s economic issues required insights that were rooted in its societal fabric, rather than adopting European economic models wholesale. Their critiques often centered around the failures of the British civilising mission, illuminating the economic degradation that colonial rule inflicted on India.

The Legacy of Early Indian Economists

The narratives constructed by these early economists are vital in tracing the lineage of economic thought in India. Their insistence on developing an Indian framework for understanding economic issues has left a lasting legacy. In particular, the notion of “Indian Economics” generated discussions that remain relevant in contemporary economic debates, particularly in post-colonial contexts where scholars grapple with the legacies of colonialism and the need for tailored economic policies.

Furthermore, figures such as Dadabhai Naoroji and Gopal Krishna Gokhale also played integral roles in shaping the discourse, articulating the need for economic justice and equity as a basis for development. Their contributions provided a groundwork upon which future generations of economists could build, advocating for an economic framework that prioritises human welfare and societal progress.

Conclusion

My examination of the first generation of modern Indian economists is a critical inquiry into how localised knowledge systems can inform broader economic theories. By shedding light on the original contributions and unique perspectives of these economists, she makes a compelling case for the significance of marginalised thought in the formulation of economic policy and practice. Their work not only critiques the imperial economic structure but also offers valuable insights into the potential pathways for India’s development – insights that continue to resonate today.

In summary, as we reflect on the narratives of the first modern Indian economists, it becomes clear that the intellectual legacy of their contributions is an underappreciated yet essential chapter in the history of economics. Their insights remind us of the importance of context in economic analysis and the necessity of inclusive dialogue that recognises diverse contributions to the field. As we continue to explore development economics, acknowledging and integrating non-Western perspectives will be vital to creating holistic solutions that address the complexities of global economies.