This presentation will help the reader to know when and from where the entrepreneurial class emerged in India, the history behind the emergence of the entrepreneurial class, and the major events that mark this emergence.

1. Emergence of
Entrepreneurial Class In India
Presented by -
Jaya Tripathi
Semester III (MBA – M52)
MONIRBA, University of Allahabad

2. Objectives of the Presentation
1. To know when and from where the entrepreneurial class emerged
in India.
2. The history behind the emergence of the entrepreneurial class is to
be explored.
3. To discuss the major events that mark this emergence.

3. Historical Timeline
of the Emergence of the Entrepreneurial Class
in India

4. The Entrepreneurial Class In India
• Ancient India-Even in 2700 BC during the Harappan civilization
internal and external trade was prevalent. Moving onto Iron age,
Vedic age, Magadha empire, Nanda dynasty and Mauryan empire
trade was widespread and overseas trade was also done.
• Medieval India (AD 700-AD 1857) trade was heavily done by the Delhi
sultanate and later on by the Mughals. Mughals used to trade with
the Arab countries, Persia, and Egypt. They imported silver from
Japan, horses from West Asia and gold from East Indies. They traded
with Europe and China also.

5. The Entrepreneurial Class In India
Continued….
• Indian trade prospered during the Mughal period and Indian products
were in huge demand in Britain starting from 1600. Between 1700
and 1720, British government revised its custom regulations twice to
discourage demand of Indian goods. This phase continued up to 1757
when East India Company captured parts of Bengal.
• With the arrival of the British in India trade was hit as they
implemented policies which discouraged indigenous industry. The
British administrators transported the raw material to Britain and
discouraged indigenous manufacturing to allow the British products
to find a market in India.

6. Entrepreneurial Class in Modern India
Pre-Independence (1857-1947)
By 1858 Britain had whole of India under its rule. It exploited our
natural resources and used our population as the customers of its
goods. It deliberately kept the economic development of the country in
poor shape. Despite these hurdles Indian entrepreneurs like Jamsetji
Tata, GD Birla, L.R. Kirloskar, and Jamnalal Bajaj started off ventures
which not only encouraged other Indian entrepreneurs but also
succeeded. The Swadeshi movement also encouraged consumption of
Indian goods and hence these industries.

7. Entrepreneurial Class in Modern India
Pre-Independence (1857-1947) Continued…
Setting up of the First Indian Mills
• In 1854, a parsi businessman Cowasji Dowar
set up the first Cotton Textile mill in India.
• In 1868 Jamsetji Tata set up the Tata Group.
• In 1874 Jamsetji Tata set up a cotton mill
called the Empress mill in Nagpur.
• In 1880 Wadia set up a cotton mill in
Mumbai.
• In 1888, Lakshman Rao Kirloskar founded
the Kirloskar group. JAMSETJI TATA “THE FATHER OF
INDIAN INDUSTRY”

8. Entrepreneurial Class in Modern India
Pre-Independence (1857-1947) Continued…
Setting up of the First Indian Enterprise
• Tata Iron and Steel Company (TISCO) was the first enterprise to start
in 1907 in Jamshedpur, Jharkhand by Dorabji Tata. Before this
individual mills were set up, this was a large scale production facility.

9. Entrepreneurial Class in Modern India
Pre-Independence (1857-1947) Continued…
• In 1919, the first jute mill was set up in Calcutta by Birla.
• In 1926, Jamnalal Bajaj set up the Bajaj Group.
• in 1932, JRD Tata set up the Tata Airlines, the first
civil aviation company in India.
• In 1945, TELCO (Tata Engineering
and Locomotive Company) and
WIPRO were set up.
• In 1920 during WW1 raw materials
could not be sent to England leading
to setup of more factories in
India by the British.

10. The Founder Entrepreneurs of India
G.D. BIRLA
JAMNALAL BAJAJ
JRD TATA

11. Entrepreneurial Class in Modern India
Post-Independence (1947-2017)
• India’s economic development strategy after independence based on
Mahalanobis model, giving preference to mining, agriculture, and
investment goods sector.
• Pt. Nehru wanted to develop the Indian economy on the lines of
Soviet Union's socialist structure. He favoured that the state should
control every aspect of the economy.
• In 1956, the Industrial policy was released.
• Between 1960 to 1980, the country’s economy reeled under the
“licence raj” and a corrupt bureaucratic system.

12. Entrepreneurial Class in Modern India
Post-Independence (1947-2017) continued…
• Despite the hurdles, Dr. Verghese Kurien
came up with the world’s first buffalo milk
powder plant in Anand , Gujarat in 1955.
• In 1957, Dr. Verghese Kurien founded
AMUL (Anand Milk Union Limited) in Anand, Gujarat.
• In 1966, Dhirubhai Ambani set up Reliance
Textile Industries Pvt. Ltd.

13. Entrepreneurial Class in Modern India
Post-Independence (1947-2017) continued…
• In 1991, Dr. Manmohan Singh brought about huge economic reforms
in terms of liberalisation. The economic focus changed from an agro
based economy to an industrialized one. With LPG (Liberalisation,
Privatisation, Globalisation) the barriers for entrepreneurial
development diminished leading to growth of the entrepreneurial
class.
• The Industries Development and Regulation Act of 1971 was
abolished in 1991.

14. Entrepreneurial Class in Modern India
Post-Independence (1947-2017) continued…
• On 14 august, 1995 the first publically available Internet service in
India was started by VSNL (Videsh Sanchar Nigam Limited) while the
ERNET (Educational Research Network) was launched in 1986.
• In 2004 the government formulated its Broadband policy leading to
availability of high speed internet in the country and in 2010 the 4G
spectrum auction made the 4G internet available.
• On 16 January, 2016 the government launched the Start Up India
scheme to further support the budding entrepreneurs of the nation.

15. The Current Indian Entrepreneurial Footprint
DILIP SANGHVI
MUKESH AMBANI
AZIM PREMJI
KIRAN MAZUMDAR SHAW
INDIRA NOOYINARAYAN MURTHI
BINNY BANSAL
SACHIN BANSAL
RITESH AGARWAL

16. Studies on the Emergence of the
Entrepreneurial Class in India

17. The Studies On the Emergence of the
Entrepreneurial Class in India
• The scholars have also tried to analyse the sociological conditions
which have played a role in entrepreneurial development in the
country. Gadgil studied Indian entrepreneurship in the 17th and 18th
centuries from historical perspective and concluded that the modern
business class mostly came from the social communities that were
traditionally involved in trading, finance and handicraft activities in
different geographical areas.

18. The Studies On the Emergence of the
Entrepreneurial Class in India Continued…
• Lamb wrote that since the advent of factory system around the
middle of the 19th century, the three Indian communities which
entered the entrepreneurial field were the Marwaris, Gujaratis and
Parsis. He also wrote that one is puzzled by the apparent
contradistinction between the hierarchical view of society as
contained in Indian caste system and the obvious vigour of Indian
trading communities.

19. The Studies On the Emergence of the
Entrepreneurial Class in India Continued…
• Hazlehurst in his study of Ram Nagar tried to analyse the factors of
caste and social community behind entrepreneurial activity. He
pointed out that in the rise of entrepreneurs not only is there a
structural continuity in the form of the old trading groups but also a
break by way of the refugees, who, according to him, have played
significant role in the process of economic experimentation with new
consumer goods. However Indian bourgeoisies remained mostly
trading partners than an industrial class. H. Venkatsubbiah, however,
wrote in 1949 that Indian big bourgeoisie was a class which was yet in
the early stage of emerging from a trading class into an industrial
class. The surpluses from trading still provided substantial funds for
the new industrialization.

20. The Studies On the Emergence of the
Entrepreneurial Class in India Continued…
• An opposing view is provided by the study of James Berna, who
studied 52 industrial installations in the then Madras State, found
that the traditional social structure did not stand out as an
obstruction in the process of entrepreneurial growth. His study shows
that the entrepreneurs, contrary to general belief, do not
preponderantly belong to the traditional group of traders with a
traditional world view of economic activities and investment.

21. Conclusion
• The entrepreneurial class in India has a long history. The factory
based production started in India by the middle of the 19th century.
Cotton, jute and coal were the fields which constituted the industrial
sector. Even during British rule Indian entrepreneurs’ grit made
Mumbai “the Manchester of the East ”.
• The rise of Indian entrepreneurial class is marked by the entry into
the manufacturing sector by three communities Parsis (ship builders),
Gujaratis (traders) and Marwaris (money lenders). Industrial
bourgeoisies developed in India from merchants and moneylenders.

22. Conclusion (continued…)
• As concluding points I would mark the following three events as
landmarks in the emergence of the entrepreneurial class in India-
1. 1907-the setting up of the Tata Iron and Steel Company by Dorabji
Tata led to more such enterprises by other Indian entrepreneurs.
2. 1991- liberalisation of business activities meant lesser barriers to
entry and encouraging atmosphere for entrepreneurs.
3. 1995- internet became the tool in the hands of the educated
youngsters to realise their entrepreneurial dreams easily.
Companies like Oyo rooms, Flipkart, Paytm, Limeroad, Jio,
Menstrupedia, Zivame and many more are all aided by the power of
Internet.

23. RICHA KAR
VIJAY SHEKHAR SHARMA
Thank You!