Hostname: page-component-78c5997874-t5tsf Total loading time: 0 Render date: 2024-11-17T22:18:58.332Z Has data issue: false hasContentIssue false

Globalization, Cities, and Firms in Twentieth-Century India

Published online by Cambridge University Press:  20 June 2022

Abstract

This article explores the linkages between globalization, cities, and firms in twentieth-century India. Since the interwar period in the early twentieth century, India withdrew from the global economy, reintegrating only in the 1990s. This reshaped the metropolitan hierarchy in India in specific ways, whether through international migration and creation of new supply chains before 1991 or by foreign direct investment in the final decade of the twentieth century. Firms—both Indian and multinational—had to respond to different waves of globalization and accordingly made location choices that in turn shaped the urban evolution. More broadly, this article points to the relevance of integrating urban history more closely with business history in studies of globalization.

Type
Research Article
Copyright
Copyright © 2022 The President and Fellows of Harvard College

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 Jones, Geoffrey, “Globalization,” in The Oxford Handbook of Business History, ed. Jones, Geoffrey and Zeitlin, Jonathan (New York, 2008)CrossRefGoogle Scholar.

2 Wallerstein, Immanuel, Politics of the World-Economy: The States, the Movements and the Civilisations (Cambridge, U.K., 1984)Google Scholar; Sassen, Saskia, The Global City: New York, London, Tokyo, 2nd ed. (Princeton, 2001)CrossRefGoogle Scholar; Taylor, P. J., World City Network: A Global Urban Analysis (London, 2004)CrossRefGoogle Scholar.

3 McCann, Philip and Acs, Zoltan J., “Globalization: Countries, Cities and Multinationals,” Regional Studies 45, no. 1 (2011): 1732, p. 19CrossRefGoogle Scholar.

4 Taylor, Peter, Derudder, Ben, Saey, Pieter, and Witlox, Frank, eds., Cities in Globalization: Practices, Policies and Theories (London, 2007)Google Scholar.

5 Manuel Castells, The Rise of the Network Society (Oxford, 1996).

6 United Nations Department of Economic and Social Affairs, World Urbanization Prospects: 2014 Revision (New York, 2014).

7 Boon, Marten, “Business Enterprise and Globalization: Towards a Transnational Business History,” Business History Review 91, no. 3 (2017): 512CrossRefGoogle Scholar.

8 Tumbe, Chinmay, “Recent Trends in the Business History of India,” Business History Review 93, no. 1 (2019): 153–59CrossRefGoogle Scholar; Masrani, Swapnesh, Morelli, Carlo, and Bagchi, Amiya Kumar, “The Rise of Indian Business in the Global Context in the Twentieth Century: A Review and Introduction,” Business History 63, no. 1 (2020): 117CrossRefGoogle Scholar.

9 Austin, Gareth, Davila, Carlos, and Jones, Geoffrey, “The Alternative Business History: Business in Emerging Markets,” Business History Review 91, no. 3 (2017): 537–69CrossRefGoogle Scholar.

10 Tripathi, Dwijendra, Oxford History of Indian Business (New Delhi, 2004)Google Scholar; Dwijendra Tripathi and Jyoti Jumani, Oxford History of Contemporary Indian Business (New Delhi, 2013); Roy, Tirthankar, A Business History of India: Enterprise and the Emergence of Capitalism from 1700 (Delhi, 2018)CrossRefGoogle Scholar; Kudaisya, Medha, ed., The Oxford India Anthology of Business History (Delhi, 2011)Google Scholar.

11 Guha, Ramchandra, India after Gandhi: The History of the World's Largest Democracy (Delhi, 2007)Google Scholar.

12 Goswami, Omkar, Goras and Desis: Managing Agencies and the Making of Corporate India (Gurgaon, 2016)Google Scholar.

13 Broadberry, Stephen and Gupta, Bishnupriya, “The Historical Roots of India's Service-Led Development: A Sectoral Analysis of Anglo-Indian Productivity Differences, 1870–2000,” Explorations in Economic History 47, no. 3 (2010): 264–78CrossRefGoogle Scholar.

14 Tumbe, Chinmay, “Transnational Indian Business in the Twentieth Century,” Business History Review 91, no. 4 (2017): 651–79CrossRefGoogle Scholar.

15 World Bank, “GDP per capita, PPP [purchasing power parity] (constant 2017 International $),” World Development Indicators 2020, accessed 11 Mar. 2022, https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.KD.

16 Roy, Business History of India.

17 Nath Gurtoo, Dukh Haran, India's Balance of Payments, 1920–1960 (Jullunder, 1961)Google Scholar. For another account on the balance of payments, see Banerji, A. K., India's Balance of Payments: Estimates of Current and Capital Accounts from 1921–22 to 1938–39 (Bombay, 1963)Google Scholar.

18 On regulations in the textiles trade, see Morelli, Carlo, “Regulating the Post-Independence Textile Trade: Anglo-Indian Tariff Negotiations from Independence to the Multi-Fibre Arrangement,” Business History 63, no. 1 (2018): 3851CrossRefGoogle Scholar.

19 Hofmeester, Karin, “Shifting Trajectories of Diamond Processing: From India to Europe and Back, from the Fifteenth Century to the Twentieth,” Journal of Global History 8, no. 1 (2013): 2549CrossRefGoogle Scholar.

20 Sivasubramonian, S., The National Income of India in the Twentieth Century (New Delhi, 2000)Google Scholar.

21 Sivasubramonian, National Income; Reserve Bank of India, Handbook of Statistics on the Indian Economy, 2018–19 (Mumbai, 2019).

22 Chinmay Tumbe, “Urbanization, Demographic Transition and the Growth of Cities in India, 1870–2020” (International Growth Centre Working Paper Series, C-35205-INC-1, 2016).

23 Chandler, Tertius and Fox, Gerald, 3,000 Years of Urban Growth (New York, 1974)Google Scholar.

24 McCann and Acs, “Globalization,” 21. The cities, in descending order, are New York, London, Tokyo, Paris, Berlin, Chicago, Ruhr, Buenos Aires, Osaka, Philadelphia, Vienna, Boston, Moscow, Manchester, and Birmingham.

25 McCann and Acs, 21.

26 Roy, Tirthankar, India in the World Economy: From Antiquity to the Present (New Delhi, 2012)CrossRefGoogle Scholar; Habib, Irfan, “Trade and Merchants in Indian History,” Studies in People's History 2, no. 1 (2015): 18CrossRefGoogle Scholar.

27 Chaudhuri, K. N., Trade and Civilization in the Indian Ocean: An Economic History from the Rise of Islam to 1750 (Cambridge, U.K., 1985)Google Scholar; Eaton, Richard, India in the Persianate Age, 1000–1765 (Oakland, 2019)CrossRefGoogle Scholar; Levi, Scott C., The Indian Diaspora in Central Asia and Its Trade, 1550–1900 (Leiden, 2002)CrossRefGoogle Scholar; Gupta, Ashin Das, Merchants of Maritime India, 1500–1800 (Amsterdam, 1994)Google Scholar; Alpers, Edward and Goswami, Chhaya, eds., Transregional Trade and Traders (New Delhi, 2019)CrossRefGoogle Scholar.

28 Chandler and Fox, 3,000 Years.

29 Riello, Giorgio and Roy, Tirthankar, eds., How India Clothed the World: The World of South Asian Textiles, 1500–1850 (Leiden, 2009)CrossRefGoogle Scholar.

30 The Census of India 1901 (vol. 1-A, part II, table 4), listed the following cities as having a population of more than a hundred thousand (in descending order): Calcutta, Bombay, Madras, Hyderabad, Lucknow, (Rangoon), Benares, Delhi, (Lahore), Cawnpore, Agra, Ahmedabad, (Mandalay), Allahabad, Amritsar, Jaipur, Bangalore, Howrah, Poona, Patna, Bareilly, Nagpur, Srinagar, Surat, Meerut, (Karachi), Madura, Trichinopoly, Baroda. Cities marked in parentheses lie outside modern-day Indian jurisdictions.

31 Gupta, Bishnupriya, “Discrimination or Social Networks: Industrial Investment in Colonial India,” Journal of Economic History 74, no. 1 (2014): 141–68CrossRefGoogle Scholar.

32 Sanklecha, S. N., Tramping to Success: Story of the Great Eastern Shipping Company Limited (Bombay, 1994), 69Google Scholar.

33 Sanklecha, 96.

34 On West Bengal, see Sinha, Aseema, The Regional Roots of Development Politics in India: A Divided Leviathan (Bloomington, IN, 2005)Google Scholar.

35 Tumbe, “Urbanization.”

36 As per the Census of India 2011, Mumbai was the largest urban agglomeration because Delhi's urban footprint outside the National Capital Territory region was not considered in the definition, as also reflected in Figure 4 of this article. As per the United Nations estimates, Delhi was larger than Mumbai.

37 Heitzman, James, The City in South Asia (Oxon, 2008)CrossRefGoogle Scholar; Annapurna Shaw, Indian Cities (New Delhi, 2012).

38 Tumbe, “Transnational Indian Business.”

39 Nair, Janaki, The Promise of the Metropolis: Bangalore's Twentieth Century (Delhi, 2005)Google Scholar.

40 Spodek, Howard, “Local Meets Global: Establishing New Perspectives in Urban History – Lessons from Ahmedabad,” Journal of Urban History 39, no. 4 (2013): 749–66CrossRefGoogle Scholar.

41 Chandler and Fox, 3,000 Years.

42 “Indian Subsidiaries or Affiliates of Companies in the US (Department of Commerce Listing)”, c. 1963, Box 5, File on Programme for Management Development Jan Feb 1964, IIMA Catalogue, Harvard Business School Archives.

43 Tumbe, “Urbanization,” table 8.

44 While Gandhinagar is the capital city of Gujarat, it is considered as an extension of the city of Ahmedabad.

45 Mathur, Om Prakash, “Impact of Globalization on Cities and City-Related Policies in India,” in Globalization and Urban Development, ed. Richardson, Harry W. and Bae, Chang-Hee Christine (Heidelberg, 2005), 4358CrossRefGoogle Scholar.

46 Basu, S. K., The Managing Agency System (Calcutta, 1958), 5Google Scholar.

47 Roy, Tirthankar, “Trading Firms in Colonial India,” Business History Review 88 no. 1 (2014): 942CrossRefGoogle Scholar.

48 Tripathi, Dwijendra, ed., Business Communities of India: A Historical Perspective (Delhi, 1984)Google Scholar; Tumbe, Chinmay, India Moving: A History of Migration (Gurgaon, 2018)Google Scholar.

49 Rungta, Radhe Shyam, The Rise of Business Corporations in India, 1851–1900 (London, 1970)Google Scholar.

50 Raianu, Mircea, Tata: The Global Corporation That Built Indian Capitalism (Cambridge, MA, 2021)Google Scholar; Nomura, Chikayoshi, The House of Tata Meets the Second Industrial Revolution (Singapore, 2018)CrossRefGoogle Scholar.

51 Markovits, Claude, Indian Business and Nationalistic Politics (Cambridge, U.K., 1985), 190Google Scholar.

52 Mukherjee, Aditya, Imperialism, Nationalism and the Making of the Indian Capitalist Class, 1920–1947 (Delhi, 2002)Google Scholar; Tomlinson, B. R., The Economy of Modern India: From 1860 to the Twenty-First Century (Delhi, 2013)CrossRefGoogle Scholar; Misra, Maria, Business, Race, and Politics in British India, c. 1850–1950 (Oxford, 1999)CrossRefGoogle Scholar.

53 Tripathi, Dwijendra and Jumani, Jyoti, The Concise Oxford History of Indian Business (New Delhi, 2007)Google Scholar.

54 Kudaisya, Medha, Tryst with Prosperity: Indian Business and the Bombay Plan of 1944 (Gurgaon, 2018)Google Scholar.

55 Tyabji, Nasir, Forging Capitalism in Nehru's India: Neocolonialism and the State, c. 1940–1970 (Delhi, 2015)CrossRefGoogle Scholar.

56 Rahul Bajaj, interview by Srikant M. Datar, Pune, India, 8 July 2014, Creating Emerging Markets Oral History Collection, Baker Library Historical Collections, Harvard Business School.

57 Roy, Tirthankar, “Transfer of Economic Power in Corporate Calcutta, 1950–1970,” Business History Review 91, no. 1 (2017): 329CrossRefGoogle Scholar.

58 An analysis of the universe of joint-stock companies in India, based on data available on the website of the Indian Ministry of Corporate Affairs.

59 Lall, R. B., Multinationals from the Third World: Indian Firms Investing Abroad (Delhi, 1986)Google Scholar.

60 Haynes, Douglas, McGowan, Abigail, Roy, Tirthankar, and Yanagisawa, Haruka, eds., Towards a History of Consumption in South Asia (Delhi, 2010)Google Scholar.

61 Lubinski, Christina, “Global Trade and Indian Politics: The German Dye Business in India before 1947,” Business History Review 89, no. 3 (2015): 503–30CrossRefGoogle Scholar.

62 Lubinski, Christina and Wadhwani, R. Daniel, “Geopolitical Jockeying: Economic Nationalism and Multinational Strategy in Historical Perspective,” Strategic Management Journal 41, no. 3 (2020): 400–21CrossRefGoogle Scholar.

63 Lubinski, Christina, Giacomin, Valeria, and Schnitzer, Klara, “Internment as a Business Challenge: Political Risk Management and German Multinationals in Colonial India (1914–1947),” Business History 63, no. 1 (2018): 7297CrossRefGoogle Scholar.

64 Lubinski, Christina, “Liability of Foreignness in Historical Context: German Business in Preindependence India (1880–1940),” Enterprise and Society 15, no. 4 (2014): 722–58CrossRefGoogle Scholar.

65 Jones, Geoffrey, Multinationals and Global Capitalism (Oxford, 2005), chap. 10Google Scholar.

66 Taya Zinkin, Foreign Capital in India (New Delhi, 1951); Michael Kidron, Foreign Investments in India; Tomlinson, B. R., “Foreign Private Investment in India, 1920–1950,” Modern Asian Studies 12, no. 4 (1978): 655–77CrossRefGoogle Scholar.

67 Encarnation, Dennis, Dislodging Multinationals: India's Strategy in Comparative Perspective (Ithaca, 1989)Google Scholar.

68 Abdelrehim, Neveen, Ramnath, Aparajith, Smith, Andrew, and Popp, Andrew, “Ambiguous Decolonisation: A Postcolonial Reading of the IHRM Strategy of the Burmah Oil Company,” Business History 63, no. 1 (2018): 98126CrossRefGoogle Scholar.

69 Pant, Anirvan and Ramachandran, J, “Navigating Identity Duality in Multinational Subsidiaries: A Paradox Lens on Identity Claims at Hindustan Unilever, 1959–2015,” Journal of International Business Studies 48, no. 6 (2017): 664–92CrossRefGoogle Scholar.

70 Jones, Geoffrey, Entrepreneurship and Multinationals: Global Business and the Making of the Modern World (Cheltenham, U.K., 2013), 165–89Google Scholar.

71 Aldous, Michael and Roy, Tirthankar, “Reassessing FERA: Examining British Firms’ Strategic Responses to ‘Indianisation,’Business History 63, no. 1 (2018): 1837CrossRefGoogle Scholar.

72 Choudhury, Prithwiraj and Khanna, Tarun, “Charting Dynamic Trajectories: Multinational Enterprises in India,” Business History Review 88, no. 1 (2014): 133–69CrossRefGoogle Scholar.