Indian Capitalist Class and the Public Sector, 1930-1947

The Indian capitalist class emerged with increased strength and large accumulations after the depression and the war, when the ties of the colonial economy with the metropolis were weakened. However, its position was still highly insecure. Past experience had taught the Indian capitalists that their gains would be short-lived if metropolitan control was fully reasserted. Even if political independence was achieved, it was feared that Indian capital wastoo weak to face foreign competition. The gains made by the capitalists during the depression and the war were not sufficient to initiate a process of industrialisation without planning and state help.