Skip to main content

Business interests? Hindu bankers 'helped' Company Raj to flourish, colonize India

By Rajiv Shah
A new book, ‘The Anarchy: The Relentless Rise of the East India Company’, authored by well-known Scott historian William Dalrymple, has said that a major reason for the success of the East India Company (EIC), which “colonized” the country between 1600 and 1857, was the support it got from Indian financiers or moneylenders, including Jagat Seth of Calcutta, Gokul Das of Benaras and other “Hindu bankers” of Patna and Allahabad.
Insisting that textbooks wrongly attribute that the British ruled India between 1600 and 1857, Dalrymple, in an interview with South Asia Times (SAT) editor Neeraj Nanda in Melbourne on the book ahead of its launch, said what is little understood is the “the corporate nature of that period of Indian history”, which turned into a “role model and” a “new factor” in world history. The British rule, according to the historian, lasted for just 90 years, between 1858 and 1974.
Already making waves, “The Anarchy” tells the story of EIC, tracing its history, how it replaced the decaying Mughal Empire up to India’s First War of Independence in 1857, after which the British Crown took control, and how EIC became the world’s first global corporate power. While EIC did receive support from the British rulers, Dalrymple suggested, back home, its success should be attributed to the finance it received from Indian trading communities.
Pointing out how it all began with EIC, Dalrymple told Nanda, “In their very first charter in 1599, they got the right to wage war. By 1718 they were growing opium in Bengal, selling it illegally in China, buying Chinese tea and selling it in India and Europe. The tea in the Boston Tea Party was exported by EIC.”
Dalrymple added, between 1740 and 1800, EIC had a “rivalry” in France. However, it succeeded in training 200,000 Indians, and for this it borrowed “money from Indian moneylenders.” It conquered “the whole Mogul empire” by adopting the double-edged tactic which – corporate violence and corporate lobbying, even as using corruption. In Britain, in 1687 EIC gave “British Parliamentarians share options.”
Talking about EIC’s “corporate violence”, Dalrymple said, there is “nothing unique about that”, insisting, it’s “very much the norm” even today, though in a more subtle way. Dalrymple explained, “It was a new business model. It was not the first corporation, probably the fourth.”
Dalrymple said, no doubt, “today, the biggest corporations, the Exxon or Walmart or Google or Facebook” do not adopt such ways, and “there is no such example now of a company holding sovereign territory as its right.” Exxon and Shell, for instance, “have small private armies… now they hold private guards only.”
Dalrymple with Nanda
However, today, things are “more subtle”. Now, “actually they do not need to do that (violence). Corporations now are extremely powerful and do data harvesting. They reproduce and can target the recording of this interview and send advertising to it… All these are variants of the same drive. Corporations, just as humans, have the DNA to eat, reproduce and survive. They have the thrust towards maximum profits they compulsively get away with.”
According to Dalrymple, “The book tells us how that happened, how on earth a company (EIC) that did not have more than 2,000 men on its rolls and its London head office never more than 35 people got away using Indian bankers to loan money to it to train other Indians to fight as mercenaries and to build up an army of 200,000. And they were able to fight the large Indian armies of the Marathas, Tipu Sultan, and the Mughals.”
Suggesting that what happened may be “uncomfortable for both nations”, Dalrymple said, “The British are quite vocal in talking about bringing civilization, democracy, and the railways. In fact, the company did nothing. What they built were very few public buildings, communications, hospitals or universities. In fact, you have two very different periods.”
Thus, during the EIC, or the Company Raj period, it was “extracting” business through shipping and trading company, turning itself into a “colonial occupier”, even as taxing Indians who invested in silks, kalamkari, cotton, etc. for trading. Calling it a “collaborative” period, Dalrymple said, the money was “being borrowed from financiers”, including the Jagat Seth of Calcutta and Gokul Das of Benaras.
Further, Dalrymple said, one-third of the company employees were “married to Indian women producing Anglo-Indians.” In sharp contrast, he said, the British Raj proper was “not collaborative but imperialist”. During the latter period, what you had were “whites-only clubs, cantonments and the civil lines”, making “the British and the Indians completely apart.” It is during this period that India got “universities, schools and the railways”, said Dalrymple, adding, “I can’t say which is worse or better.”
The company issued bonds and asked Indian financiers to invest in them with a guaranteed return.  There was no safer investment than this
According to him, “The company was of a different religion, language and colour, so Jagat Seth and EIC merged as they knew the interest rates, share prices, fluctuations of the world economy, the world they both swam in.” He added, “The Hindu bankers of Patna, Banaras, and Allahabad, in the century that followed, made the decision to cut back with the Marathas and Mughals and go with EIC to keep their capital safe. That’s a business decision they made.”
Said Dalrymple, “We can criticize this decision from our perspective, but they did it as a business decision, according to the times they were operating in. Just like companies do it today to prefer one party over the other.”
This, he said, helped the company to become “resurgent and confident” by 1780. Acting “very cleverly”, EIC broke up the big Mughal ‘jagirs’, the Indian financiers bought them over, and these were made to become a part of the company. This helped the company to project itself as a “lesser evil compared to the Marathas and the Moguls.” Opined Dalrymple, “We can judge them (the financiers) today as traitors but they thought their capital etc. was safer with the company.”
Dalrymple explained, “At that time India had two important financers – Indian bankers and the company itself. The EIC issued company bonds and asked the Indian financers to invest in them with a guaranteed return. So, there was no safer investment … than the EIC bonds” The company raised money from Bengali investors, and used it to “buy arms to extend its power.”
Answering a question from Nanda that “Hindu nationalists believe the British did well by removing the Mughals”, Dalrymple said, Jagat Seth would surely agree with that, as “Jagat Seth used the company to remove the Mughals.”
But, he insisted, “It’s different from the modern Hindu nationalists. Many Bengalis also have the same opinion despite the company plundering and looting.” The level of collaboration for this is forgotten even in Britain, where they have taken a “romanticized view of our colonial encounter with India.” In India, conversely, what has been forgotten is the level of collaboration.”

Comments

Jabir Husain said…
Similarly, in Gujarat, old banker of Lalbhai group, originally, Marwari Jain's also financed Mughals and several Muslim rulers, prior to British Raj, quote unquote!
Uma said…
Greed--does not allow room for loyalty or religion.
a2car said…
This book is based on a fundamentally wrong premise: that the British supplanted the Mughals in India. The reality of history is that the British supplanted the Marathas as the pre-eminent power in India. The Maratha Empire replaced the Mughal Empire.

TRENDING

How community leaders overcome obstacles to protect forests and pastures in remote villages

By Bharat Dogra  Dheera Ram Kapaya grew up in such poverty that, unable to attend school himself, he would carry another boy’s heavy school bag for five kilometers just to get a scoop of daliya (porridge). When he was finally able to attend school, he had to leave after class five to join other adolescent workers. However, as soon as opportunities arose, he involved himself in community efforts—promoting forest protection, adult literacy, and other constructive initiatives. His hidden talent for writing emerged during this time, and he became known for the songs and street play scripts he created to promote forest conservation, discourage child marriages, and support other social reforms.

Workers' groups condemn Gujarat Ordinance increasing working hours, warn of statewide agitation

By A Representative   At a consultation organised today by the Asangathit Shramik Hit Rakshak Manch at Circuit House in Ahmedabad, leaders of major trade unions and labour rights organisations strongly opposed the Gujarat government’s recent ordinance amending the Factories Act and the draft rules notified under the Occupational Health and Safety (OHS) Code, 2020. Around 50 representatives from central trade unions, independent unions, and labour welfare organisations participated in the meeting.

The GMO illusion: Three decades of hype, harm, and false hope

By Sridhar Radhakrishnan  Three decades of hype, billions of dollars spent, and still no miracle crop. It's time to abandon the GMO biotech fairy tale and return to the soil, the seed, and the farmer. “Trust us,” they said. “GMOs will feed the world.” Picture a world where there is plenty of food, no hunger, fields grow without chemical pesticides, children are saved from malnutrition, and people live healthily.

Deaths in Chhattisgarh are not just numbers – they mark a deeper democratic crisis

By Sunil Kumar  For a while, I had withdrawn into a quieter life, seeking solace in nature. But the rising tide of state-sponsored violence and recurring conflict across India has compelled deeper reflection. The recent incidents of killings in central India—particularly in Chhattisgarh—are not isolated acts. They point to a larger and ongoing crisis that concerns the health of democracy and the treatment of marginalised communities.

Sandra Gonzalez Sanabria: An inspiring life from Colombia’s Amazonian valley

By Vidya Bhushan Rawat*  In the village of Héctor Ramírez, known as Agua Bonita, in La Montañita, Caquetá, Colombia, a vision of peace and renewal is unfolding. In the pre-2016 period, this would have been nearly impossible for outsiders to visit, as it was the epicenter of violent resistance against state oppression. However, after the Peace Accord was signed between the Colombian government and former revolutionaries—marking the end of a 70-year insurgency that claimed over 400,000 lives until 2025, including civilians, rebel fighters, and security personnel—things began to change. Visiting Agua Bonita during the Global Land Forum in Bogotá revealed a village of hope and resilience. Former FARC revolutionaries have settled here and transformed the village into a center of peace and aspiration.

'Bengali Muslim migrant workers face crackdown in Gurgaon': Academic raises alarm

By A Representative   Political analyst and retired Delhi University professor Shamsul Islam has raised serious concerns over the ongoing targeting and detention of Muslim migrant workers from West Bengal in Gurgaon, Haryana. In a public statement, Islam described the situation as "brutal repression" and accused law enforcement agencies of detaining migrants arbitrarily under the pretext of verifying their citizenship.

Indigenous Karen activist calls for global solidarity amid continued struggles in Burma

By A Representative   At the International Festival for People’s Rights and Struggles (IFPRS), Naw Paw Pree, an Indigenous Karen activist from the Karen Human Rights Group (KHRG), shared her experiences of oppression, resilience, and hope. Organized with the support of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), the event brought together Indigenous and marginalized communities from across the globe, offering a rare safe space for shared learning, solidarity, and expression.

Gender violence defies stringent laws: The need for robust social capital

By Dr. Manoj Kumar Mishra*  The tragic death of Miss Soumyashree Bisi, a 20-year-old student from Fakir Mohan College, Balasore, who reportedly self-immolated due to harassment, shocked the conscience of Odisha. Even before the public could process this horrifying event, another harrowing case emerged—a 15-year-old girl from Balanga, Puri, was allegedly set ablaze by miscreants. These incidents are not isolated; they highlight a disturbing pattern of rising gender-based violence across the state and the country.

The myth of population decline: India’s real challenge is density, not fertility

By N.S. Venkataraman*   India’s population in 2025 stands at approximately 1.4 billion. In 1950, it was 359 million, rising sharply to 1.05 billion by 2000. The population continues to grow and is projected to reach around 1.7 billion by 2050.