Historical Perspectives on Innovation in Indian Business

Abstract

This chapter deals with the question of innovation in Indian business from a historical perspective. After a brief survey of the literature, emphasizing how divided scholarly opinion was regarding the existence of forms of innovation in Indian business prior to the colonial era, the focus shifts to the British period. It is shown that Schumpeter’s definition of innovation equating it with technological innovation cannot be fruitfully applied to the Indian business scene. Two case studies are then proposed: Tata Iron & Steel, the largest Indian industrial firm, is shown to have been innovative in the specific context of India’s backward industrial scene, while the Sindwork merchants of Hyderabad are an instance of an Indian trading network which extended its range to the entire world. Concluding remarks interrogate post-Independence developments and stress the limits of the innovativeness of Indian business, prior to the recent liberal reforms.