Development of Capitalism in India

Ranjit Sau The latest international division of labour has set in motion a worldwide relocation of industries providing fillip to industrialisation in certain parts of the globe hitherto untouched by modern industry. Under the shadow of this broad sweep, will capitalist development in India result in a basic transformation in its state and society, and usher in the era of so-called 'modernisation'? This is the central question to which this paper addresses itself Like the absolute ground-rent vis-a-vis capitalism in agriculture, the paper argues, the merchant's profit in a country such as India at its present stage of development acts as an obstacle to the growth of capitalism in industry. It further contends that the path of transition to full-fledged capitalism is blocked from both sides: above and below. Internally the structures is such that small capitalists find it difficult to move to higher levels; likewise, the landlords and capitalist farmers with investible resources are not sufficiently stimulated to transform themselves into industrial capitalists. On the other hand, large industrial capitalists are subject to competitive threat from world monopoly capital.