The state and the capitalist class in india

The relationship between Indian capitalists and the state has undergone considerable shifts over time. There also have been some changes in the scholarly perception of how the relationship has evolved. In early nationalist historiography, and in some of the mainstream social science literature, Indian business was seen as having been dominated by the state-first by the colonial administrators, who favored European expatriate enterprises, and then by the Nehruvian regime, which prioritized social objectives over entrepreneurial initiative. It was only with the onset of liberalization in 1991, the story goes, that business was able to acquire real power. Recent scholarship has forced a modification of this understanding. Although it is no doubt true that the last two decades have witnessed an increase in capitalist influence over the state, this was an increase over a baseline that was already very high. The capitalist class was a key agent in Indian politics even in the waning years of colonial rule.