Entrepreneurial India: 7 Powerful Truths About How the British Killed Business and Sparked a 150-Year Setback

Saurabh Mukherjea argues that British colonialism deliberately crushed India’s thriving entrepreneurial culture, which had produced globally dominant traders and financiers like Virji Vora and Jagat Seth under Mughal stability. Recognizing Indian business prowess as competition, the British systematically displaced indigenous merchants through discriminatory policies while simultaneously propagating narratives portraying them as “cunning” to erode their social standing.

This cultural sabotage created deep-rooted suspicion of entrepreneurship that persisted after independence, as bureaucrats inherited colonial mindsets favoring salaried roles over business. The resulting “chase salaries” mentality stifled India’s inherent commercial spirit for 150 years. Only post-1991 reforms began dismantling these barriers, with current soaring startup registrations signaling a true reawakening. Mukherjea contends India isn’t suddenly becoming entrepreneurial—it’s finally reclaiming a stolen legacy suppressed first by colonial policy and later by bureaucratic inertia. This resurgence reflects the enduring power of India’s pre-colonial economic DNA.

Entrepreneurial India: 7 Powerful Truths About How the British Killed Business and Sparked a 150-Year Setback

Saurabh Mukherjea’s stark assertion cuts deep: “The British killed Indian business and made us chase salaries.” This isn’t just historical lament; it’s a crucial lens for understanding a 150-year economic detour India is only now correcting. His argument, drawing heavily on historian Lakshmi Subramanian’s work, unveils a deliberate dismantling of a once-vibrant commercial superpower. 

The Mughal Era: When India Was a Business Powerhouse 

Forget the notion of a passive pre-colonial India. Mukherjea paints a picture of robust economic dynamism under Mughal stability (16th-18th centuries): 

• Dominant Global Trader: India wasn’t just participating in trade; it dominated the Indian Ocean, connecting the Middle East and Southeast Asia. 

• Stable Foundations: Predictable law and order under Mughal administration provided the bedrock for complex commerce to flourish. 

• Titans of Industry (Forgotten No More): Figures like Virji Vora (often called India’s Rothschild, dominating Surat’s trade), Shanti Das Zaviri (a powerful brokeress), Mullah Abdul Gafar (a shipping magnate), and the colossal banking house of Jagat Seth weren’t just wealthy – they were global-scale entrepreneurs. Mukherjea aptly terms them the “unicorns” of their era, commanding sectors from cotton and shipping to finance and international trade. 

The British Dismantling: Policy, Prejudice, and Propaganda 

The arrival and consolidation of British power marked a catastrophic turning point. Mukherjea argues this wasn’t accidental, but calculated suppression: 

• Systematic Displacement via Policy: Recognizing the prowess of Indian entrepreneurs, the British enacted discriminatory laws and practices. Elite Parsi merchants in Bombay and giants like Dwarkanath Tagore in Bengal faced targeted exclusion from key sectors and opportunities, ensuring British commercial interests prevailed. 

• Cultural Sabotage: Beyond economics, the British deployed a potent psychological weapon. They propagated narratives portraying traditional Indian business communities (Gujarati, Marwari, Parsi, Sindhi) as inherently “cunning” or “distasteful.” This insidious campaign eroded the social standing of the entrepreneur within Indian society itself, fostering suspicion instead of admiration. 

The Long Shadow: Independence Didn’t Break the Spell 

Mukherjea’s most compelling insight is the persistence of this colonial mindset after 1947: 

• The Bureaucratic Inheritance: The newly independent India’s administration, shaped by the British-trained Indian Civil Service (ICS), inherited and perpetuated the deep-seated skepticism towards indigenous business. The “License Raj” wasn’t just inefficient; it embodied the colonial distrust of private enterprise. 

• The Salaried Mentality: The systematic destruction of indigenous business avenues, coupled with the cultural devaluation of entrepreneurship, pushed generations towards the perceived safety of salaried jobs or government service – the “chase salaries” phenomenon Mukherjea describes. The entrepreneurial spirit was suppressed, not extinct, but forced underground or into narrow channels. 

1991 and Beyond: The Slow Reawakening 

The economic liberalization of 1991, spearheaded by Manmohan Singh and P.V. Narasimha Rao, began dismantling the institutional barriers. However, Mukherjea suggests the cultural shift took longer. 

Today: Breaking the 150-Year Suppression 

Mukherjea points to a tangible resurgence: 

• Entrepreneurial Surge: The current rate of new company registrations in India is three times higher than a decade ago. This isn’t just economic data; it’s evidence of a cultural and psychological breakthrough. 

• Reclaiming Legacy: India is finally shaking off the dual yoke – first the explicit suppression by the British, then the inherited bureaucratic suspicion post-independence. The forgotten stories of the Virji Voras and Jagat Seths are not just history lessons; they are reminders of an ingrained entrepreneurial DNA reasserting itself. 

The Genuine Insight 

Mukherjea’s analysis forces us to confront a profound truth: India’s mid-20th century economic struggles and its historical dependence on salaried employment weren’t inherent cultural traits or failures. They were the direct, calculated consequence of colonial policy and psychological warfare designed to subjugate a formidable commercial rival. The current entrepreneurial explosion isn’t a sudden miracle; it’s the delayed resurgence of a deep-rooted legacy, finally breaking free from 150 years of enforced suppression. Understanding this history is crucial to appreciating the true significance of India’s ongoing business renaissance. It’s not just about building new companies; it’s about reclaiming a stolen identity.