Gandhi: Patron Saint of the Industrialist.

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Gandhi: Patron Saint of the Industrialist

Leah Renold[ ]

During the years of the Indian independence movement, a leading Indian industrialist, G. D. Birla, was Mahatma Gandhi's most generous financial supporter. While Birla has been described as a devotee of Gandhi, the relationship between the two men was more one of collaboration than of one-sided devotion. Gandhi's campaigns were made possible by drawing from Birla's vast financial resources while Birla benefited not only from the social and religious prestige which his association with Gandhi brought him, but his economic role and position as a wealthy capitalist was strengthened and glorified. Gandhi gave his blessing to the abundant wealth of Birla with his teaching on trusteeship, a concept which asserted the right of the rich to accumulate and maintain wealth, as long as the wealth was used to benefit society. Gandhi apparently borrowed the concept of trusteeship from the writings of the American millionaire, Andrew Carnegie, who had used trusteeship to promote capitalism over socialism.

The close relationship between Gandhi and G. D. Birla did not escape scrutiny. B. R. Ambedkar, a leader of the untouchable castes, accused Gandhi of pretending to support the cause of the oppressed while actually supporting the forces of social conservatism.[40] Lord Linlithgow, the Viceroy of India, questioned the Gandhi-Birla connection. Linlithgow, who had blamed Gandhi for the sabotage and violence of the Quit India Movement of 1942, had suspicions that Birla, as representing big business, was actually the hidden hand behind the violence.[41] Investigations by the governments of both colonial and independent India into Birla's economic and political association with Gandhi and the Congress failed to bring criminal indictment.[42] Nevertheless, the relationship between the two men had consequences for the future of India and deserves attention. Gandhi and Birla, both strong defenders of social conservatism, shared objectives that were not brought out openly. In the shadow of Gandhi's public persona and popular teachings, Gandhi and Birla were able to weave conservative policies into the social, political, and economic fabric of independent India.

Ghanshyam Das Birla (1894-1983) was from a Marwari merchant family of Pilani in Rajasthan.[43] His grandfather, Seth Shivanarain Birla, set out for Bombay on a camel in 1862. In Bombay, Shivanarain began trading in seeds and bullion. His only son, Baldeodas, joined him in the business at age thirteen in 1875. The Birla's trading business thrived and the family established an export-import business in Calcutta. In Bombay the family moved into trading in cotton, wheat, rape-seed and silver. G. D. began his apprenticeship in the family business at age thirteen. G. D. was sixteen when he started his own brokerage. G. D.'s business took him into contact with the British. He was offended by their racial arrogance. Birla wrote, "I was not allowed to use the lift to go up to their offices nor their benches while waiting to see them. I smarted under these insults and this created in me a political interest."[44]

When G. D. was in his early twenties he found himself a wealthy man. World War I had produced great profits in his trading business. He was also a wanted man. G. D., in his frustration with the British had become involved with the Bara Bazaar Youth League, a group that engaged in terrorist activities against the British. Birla denies participating in terrorism, but in 1916 he was accused of stealing a shipment of armaments. He went into hiding for several months until friends could have the charges dropped against him.

Birla, restored to his business, decided to steer clear of terrorism. He would meet the British on the playing fields of business. There were British businessmen though who did not want him to play. When the Birlas attempted to open a jute factory in Calcutta, a British competitor started buying up all the land adjacent to the plot on which the Birlas were to build their factory, forcing the Birlas to move elsewhere. The Birlas were not deterred. G. D. and his brothers prospered in the jute business, as well as in their other enterprises. At the beginning of World War II, the Birlas were worth $3.3 million. By the end of the war, they had holdings of $20 million.[45] Before independence in 1947 the Birlas had 20 companies. Today they own 175 businesses and are prominent in textiles, sugar, jute, automobiles, bicycles, boilers, calcium carbides, industrial alcohol, linoleum, woolens, flax, ghee, margarine, and also starch, confectionery, banking, and insurance. The Birlas owned several newspapers including the Hindustan Times and a large interest in radio. In the summer of 1993, the Birla fortune was $1.5 billion.[46] G. D. Birla's political activities were a factor in the success of the Birla empire.

G. D. Birla's association with Mahatma Gandhi began in 1915. Gandhi had just returned to India from South Africa as a hero for championing the rights of Indian workers. In Calcutta, where Gandhi was to make a speech, Birla arranged a grand reception for him. Birla related his first impressions of Gandhi:

At this first meeting he appeared rather queer .... I was rather puzzled about him when I first saw him, and then gradually I came to know him .... He gave us a new conception of politics. We felt him a saint as well as a politician .... That meeting was thirty-two years ago, and since then I have been associated with him and have been giving him such service as I can.[47]

The service that Birla provided amounted to supplying practically every financial need Gandhi brought to him. Gandhi had other sources of income, including the assistance of the industrialist Jamnalal Bajaj, as well as the accumulated donations from multitudes of poor supporters, but Birla was the major financier. Birla's brothers also contributed to Gandhi, but sometimes G. D.'s gifting was seen by them as an extravagance.[48] Birla rarely refused any financial request on Gandhi's part and Gandhi's requests were numerous. The following request from Gandhi was not atypical:

My thirst for money is simply unquenchable. I need at least Rs. 2,00,000--for khadi, untouchability and education. The dairy work makes another Rs. 50,000. Then there is the Ashram expenditure. No work remains unfinished for want of funds, but God gives after severe trials. This also satisfies me. You can give as you like for whatever work you have faith in.[49]

With Birla's beneficence Gandhi was able carry on his massive political campaigns, as well as to maintain a semblance of poverty and simplicity in lifestyle, while enjoying almost limitless financial resources.

While Gandhi appeared to share the living standards of the typical Indian villager in his ashram, the annual expenditure of his ashram was 100,000 rupees,[50] a considerable sum in pre-Independence rupees. In a similar vein, Gandhi was known for his humility in insisting on travelling by third-class trains. To get a seat in a crowded third-class car was difficult, so when Gandhi and his entourage travelled, the entire third-class car, cars, and sometimes even the whole train was paid for to ensure Gandhi's comfort.[51] When Gandhi attempted to make a symbolic action by temporarily moving into an untouchable colony in Delhi, half the residents were moved out before his visit and the shacks of the residents torn down and neat little huts constructed in their place. The entrances and windows of the huts were screened with matting, and during the length of Gandhi's visit, were kept sprinkled with water to provide a cooling effect. The local temple was white-washed and new brick paths were laid. In an interview with Margaret Bourke-White, a photo-journalist for Life magazine, one of the men in charge of Gandhi's visit, Dinanath Tiang of the Birla Company, explained the improvements in the untouchable colony, "We have cared for Gandhiji's comfort for the last twenty years."[52]

Gandhi put forward the illusory image of poverty and simplicity while he was actually living very comfortably. We can only speculate whether this image-making was political posturing on Gandhi's part or whether the amenities were forced on him by the practicalities of operating a massive movement. When Gandhi was questioned by the journalist Louis Fischer about the percentage of his budget which was funded by the rich, Gandhi told him practically all of it was, adding, "In this ashram, for instance, we could live much more poorly than we do and spend less money. But we do not and the money comes from our rich friends."[53] Gandhi was not oblivious to the expense laid out for him.

We can also only speculate on whether certain statements Gandhi made were representative of his opinions or whether they, too, could have been political tactics. Gandhi was well known for espousing seemingly contradictory positions. As a result it is a difficult task to decide what Gandhi's true positions were. For example, Birla criticized Gandhi for his public support of the Swaraj party. Birla did not care for the party due to its violent propensities.[54] Gandhi responded:
Join now!


I shall talk to you about the Swaraj party when we meet. I do not want you to change your view because by justifying your views I seek to justify my position as well.[55]

Apparently Gandhi had reasons for publicly seeming to support a party which he admitted in private he was against. Similarly, Gandhi voiced radical views against capitalism and industrialism in his public speeches and writing:

Industrialism is, I am afraid, going to be a curse for mankind .... Industrialism depends entirely on your capacity to exploit.[56]

To change to industrialism is to ...

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