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Caste and Capitalism in Colonial India: The Nattukottai Chettiars
David Rudner's richly detailed ethnographic and historical analysis of a South Indian merchant-banking caste provides the first comprehensive analysis of the interdependence among Indian business practice, social organization, and religion.
Exploring noncapitalist economic formations and the impact of colonial rule on indigenous commercial systems, Rudner argues that caste and commerce are inextricably linked through formal and informal institutions. The practices crucial to the formation and distribution of capital are also a part of this linkage.
Rudner challenges the widely held assumptions that all castes are organized either by marriage alliance or status hierarchy and that caste structures are incompatible with the "rational" conduct of business.
Exploring noncapitalist economic formations and the impact of colonial rule on indigenous commercial systems, Rudner argues that caste and commerce are inextricably linked through formal and informal institutions. The practices crucial to the formation and distribution of capital are also a part of this linkage.
Rudner challenges the widely held assumptions that all castes are organized either by marriage alliance or status hierarchy and that caste structures are incompatible with the "rational" conduct of business.
- GenresNonfictionHistory
Hardcover
First published December 21, 1994
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March 10, 2019
In my most recent visit to my native place Devakottai (in the Chettinad area), I noticed that about 100 to 200 years back people from the community had so much money that they built huge mansions with intricate wooden carvings and large temples using private money. In fact the name Nattukottai Chettiars, come from the fort-like (Kottai) houses that people from the community built. Sadly, the new houses being built in the area are no longer that awe-inspiring and new temples are much less common. I was curious about how people from the community were so rich a hundred or so years ago. That in a way was lead me to this book.
The book is a study of the Nattukottai Chettiars as a banking community and the practices that led to their success, primarily the organisation within the community. The crux of the book is how the organisation at the community (caste) level helped mediate between the microeconomic world of individual Nagarathar (Nattukottai Chettiar) banking practices and the macro-economic world of the colonial-Indian economy. As a general reader, I found the book a bit of a technical read in the anthropological and historical literature it references. The author makes a thorough study of the practices in the community - the pulli system of tracking population, the naming convention of using ancestry (like Sp. Sv. Rm.) to establish reputation and non-hierarchical organization within the community that supported free flow of money in the banking business. I learnt a lot about how many of the practices in the community came about and made me think about which ones are relevant even today and which ones are less relevant.
This book also raised two important questions for me:
1. What are we as a community (or nation) doing to document our own history? Documenting (and teaching) our history and practices, can help form a sense of identity and help reason about what practices from the past are relevant in the present-day world. This clearly isn't an area of strength in India. What are we doing to get better at this?
2. A few hundred years back, the Nattukottai Chettiars organised themselves at the level of caste to mediate between their individual business practices and the economy of that day. How do we organize ourselves today to mediate between these two worlds? Today's world is much more connected and it is easy to find like-minded people. But even in finding like-minded people, do we organize ourselves through people with similar values, similar goals or similar skills to interact with the larger economy?
The book is a study of the Nattukottai Chettiars as a banking community and the practices that led to their success, primarily the organisation within the community. The crux of the book is how the organisation at the community (caste) level helped mediate between the microeconomic world of individual Nagarathar (Nattukottai Chettiar) banking practices and the macro-economic world of the colonial-Indian economy. As a general reader, I found the book a bit of a technical read in the anthropological and historical literature it references. The author makes a thorough study of the practices in the community - the pulli system of tracking population, the naming convention of using ancestry (like Sp. Sv. Rm.) to establish reputation and non-hierarchical organization within the community that supported free flow of money in the banking business. I learnt a lot about how many of the practices in the community came about and made me think about which ones are relevant even today and which ones are less relevant.
This book also raised two important questions for me:
1. What are we as a community (or nation) doing to document our own history? Documenting (and teaching) our history and practices, can help form a sense of identity and help reason about what practices from the past are relevant in the present-day world. This clearly isn't an area of strength in India. What are we doing to get better at this?
2. A few hundred years back, the Nattukottai Chettiars organised themselves at the level of caste to mediate between their individual business practices and the economy of that day. How do we organize ourselves today to mediate between these two worlds? Today's world is much more connected and it is easy to find like-minded people. But even in finding like-minded people, do we organize ourselves through people with similar values, similar goals or similar skills to interact with the larger economy?
October 4, 2019
The Book is an examination of merchant-banking caste in Tamil Nadu. Merchant banking castes were vital to South Indian economy during 1700’s to 1950’s.
The author — Anthropologist and scholar, David West Rudner, focuses on the Nakarattars of Tamil Nadu, also known as Chettiars.
Chettiars are located in Chettinad area or specifically around Karaikudi, Chidambaram, Pudukottai town in Tamil Nadu.
The Book is laid out into three parts:
Part 1) Concepts
Part 2) Business
Part 3) Ritual and Kinship
Part 1 - Concept:
Caste is characteristic unit of Indian Social Organization. Nakarattar caste were primarily mercantile bankers. They started with salt trading as their occupation. Around 1760’s salt trading was unprofitable so they entered money-lending trade.
Occupationally — they played a middle role between Colonial British Government and local agrarian-communities in Tamil Nadu. Nakarattars monopolized marketshare of money lending as their financial instrument. Mainly, they focused on family, business and God (saivism)
Surprisingly — had no other South Indian competitors in major markets. Through their business enterprises, acting as an extension of family kinship, they could scale and diversify into markets like Ceylon, Burma, Madras, Malaya. Nakarattars were primarily economic than political.
Within the field of Anthropology, among South Indian Castes, every caste occupied a trade and specialized occupation. They played considerable role in financial, political role in early 20th century madras presidency.
David West Rudner, argues that Nagarattars are an argument against the famous Sociologist, Max Webers theory on incompatibility of Hinduism and Capitalism. Nagarattars functioned as communal capitalists.
One could say — caste is symbolic capital. Symbolic capital is an anthropological concept. It captures how sociological relationships function for an individual in society. An individual has access to resources such as capital, human labor, kin groups based on honor, prestige, recognition.
Through symbolical capital, an individual belonging to a caste could concretely mobilize as political factions to achieve a specific outcome. Castes do not have specific rights through symbolic capital. They are temporary social extended kin groups.
Part 2 - Business:
This Chapter focuses on specific details on cavities of nagarattar business entities in Tamil Nadu, Ceylon, Burma, Malaya.
Nagarattar’s business financial statement gives a detailed picture of their community. The chapter goes into specific details on balance sheet, income statement, affluence of nagarattars. They extended their philanthropic activity in making religious gift to construct temples among their community.
During 17th-19th century, India was the largest manufacturer of advanced goods, i.e. Textiles. They controlled 24% of world’s gross domestic product.
Nagarattar’s built their commercial empire out of complex network of interdependent family business firms lending money to business. Along with their profit making intention, went hand in hand with moral good.
Part 3 - Ritual and Kinship:
In Ritual and Kinship, David focuses on Dravidian kinship marriages. He goes in depth into various kinship and customs. If you are a non-Tamil or non-South Indian reader, this chapter might be fascinating to you. Many of the kinship concepts do not extend as the same in Western world. Dravidian communities have customs in marriage with relatives, extended relatives, caste groups. Trust was essential ingredient. He says marriage was a negotiation between two descent groups.
A Nagarattar boy was trained from young age in basic numeric, multiplication, accounting in the context of skills required for money lending and banking.
Around teenage years, he would work as an apprentice in one of the family firms. Once he finished back, he was ready to get married, and take responsibility of leading the business step by step.
David West Rudner gives specific examples of famous Nagarattars. A notable one is Annamalai Chettiar, who founded Annamalai University in Chidambaram, Tamil Nadu. He was impressed by British Education.
Politically in early 20th century, Justice Party in Tamil Nadu played an important role in Tamil patriotism. Nagarattars involved actively in Madras Presidency during this time. Raja Muttiah played important role in portraying Congress party, or party of Mahatma Gandhi as North Indian Brahmins. Northern Aggression or Hindi imposition would be upon Tamil people. Thus, Justice Party gained respect among Tamil people. They preferred British rule over Congress.
Finally, Nagarattar’s influence extended to Indian Bank, Imperial Bank, Reserve Bank of India.
Deus Vult,
Gottfried
The author — Anthropologist and scholar, David West Rudner, focuses on the Nakarattars of Tamil Nadu, also known as Chettiars.
Chettiars are located in Chettinad area or specifically around Karaikudi, Chidambaram, Pudukottai town in Tamil Nadu.
The Book is laid out into three parts:
Part 1) Concepts
Part 2) Business
Part 3) Ritual and Kinship
Part 1 - Concept:
Caste is characteristic unit of Indian Social Organization. Nakarattar caste were primarily mercantile bankers. They started with salt trading as their occupation. Around 1760’s salt trading was unprofitable so they entered money-lending trade.
Occupationally — they played a middle role between Colonial British Government and local agrarian-communities in Tamil Nadu. Nakarattars monopolized marketshare of money lending as their financial instrument. Mainly, they focused on family, business and God (saivism)
Surprisingly — had no other South Indian competitors in major markets. Through their business enterprises, acting as an extension of family kinship, they could scale and diversify into markets like Ceylon, Burma, Madras, Malaya. Nakarattars were primarily economic than political.
Within the field of Anthropology, among South Indian Castes, every caste occupied a trade and specialized occupation. They played considerable role in financial, political role in early 20th century madras presidency.
David West Rudner, argues that Nagarattars are an argument against the famous Sociologist, Max Webers theory on incompatibility of Hinduism and Capitalism. Nagarattars functioned as communal capitalists.
One could say — caste is symbolic capital. Symbolic capital is an anthropological concept. It captures how sociological relationships function for an individual in society. An individual has access to resources such as capital, human labor, kin groups based on honor, prestige, recognition.
Through symbolical capital, an individual belonging to a caste could concretely mobilize as political factions to achieve a specific outcome. Castes do not have specific rights through symbolic capital. They are temporary social extended kin groups.
Part 2 - Business:
This Chapter focuses on specific details on cavities of nagarattar business entities in Tamil Nadu, Ceylon, Burma, Malaya.
Nagarattar’s business financial statement gives a detailed picture of their community. The chapter goes into specific details on balance sheet, income statement, affluence of nagarattars. They extended their philanthropic activity in making religious gift to construct temples among their community.
During 17th-19th century, India was the largest manufacturer of advanced goods, i.e. Textiles. They controlled 24% of world’s gross domestic product.
Nagarattar’s built their commercial empire out of complex network of interdependent family business firms lending money to business. Along with their profit making intention, went hand in hand with moral good.
Part 3 - Ritual and Kinship:
In Ritual and Kinship, David focuses on Dravidian kinship marriages. He goes in depth into various kinship and customs. If you are a non-Tamil or non-South Indian reader, this chapter might be fascinating to you. Many of the kinship concepts do not extend as the same in Western world. Dravidian communities have customs in marriage with relatives, extended relatives, caste groups. Trust was essential ingredient. He says marriage was a negotiation between two descent groups.
A Nagarattar boy was trained from young age in basic numeric, multiplication, accounting in the context of skills required for money lending and banking.
Around teenage years, he would work as an apprentice in one of the family firms. Once he finished back, he was ready to get married, and take responsibility of leading the business step by step.
David West Rudner gives specific examples of famous Nagarattars. A notable one is Annamalai Chettiar, who founded Annamalai University in Chidambaram, Tamil Nadu. He was impressed by British Education.
Politically in early 20th century, Justice Party in Tamil Nadu played an important role in Tamil patriotism. Nagarattars involved actively in Madras Presidency during this time. Raja Muttiah played important role in portraying Congress party, or party of Mahatma Gandhi as North Indian Brahmins. Northern Aggression or Hindi imposition would be upon Tamil people. Thus, Justice Party gained respect among Tamil people. They preferred British rule over Congress.
Finally, Nagarattar’s influence extended to Indian Bank, Imperial Bank, Reserve Bank of India.
Deus Vult,
Gottfried
June 10, 2018
This is a fascinating but very academic study on the Nattukottai Chettiars - the banker community in South India (in pre-colonial and colonial times). Nattukottai Chettiars started as salt traders in Tamil Nadu in 1700s and moved into banking by 1800s. By the end of 19th century, their banks not only had footprints all over south-east Asia but controlled key trades in these regions. For his part, Rudner covers the various aspects of the community over 300 years - starting from their unique banking system, their exploitation of the various quirks of the British Raj, their internal caste organization - things that made them unique and successful. As a Foreigner, Rudner finds their community culture fascinating - but some of which we might find obvious and redundant information. However comprehensive the study is, it leaves us wishing Rudner had spent more time in the part played by colonial history and politics in the whole narrative - and vice versa.
Displaying 1 - 3 of 3 reviews