India’s Tata “Paid a Harsh Price” for Keeping Distance from Government

(p. A15) Mr. Raianu, a historian at the University of Maryland, is guilty of no hype when he titles his book “Tata: The Global Corporation That Built Indian Capitalism.”

. . .

No other company has dominated the history of its national commerce and industry quite as much as the house of Tata in India, where it is one of the few major businesses still regarded as unstained by overt corruption. Although family-run for most of its existence—the stubborn Indian norm for merchants—the Tata company was from an early date “unusual” among India’s corporate groups (Mr. Raianu says) in employing professional executives and “talented nonrelatives.” The company also “kept its distance from the state” in both colonial and postcolonial times. It gave only lukewarm support to the Indian National Congress, which meant that the Tatas had few political chips to cash when the Congress party came to govern a free India. It paid a harsh price for this aloofness when Air India—the Tatas’ thriving aviation arm—was nationalized by Prime Minister Nehru in 1953.

. . .

The Parsi character of the company has, in many ways, helped it to transcend the mud pit of Indian business. The Parsis are a minuscule community, numbering around 57,000 Indians today. Practitioners of Zoroastrianism, they fled to India in the eighth century when Persia came under the sway of Islam. They embraced Western ways more readily than other Indians and, as a result, thrived under the British. Parsis, writes Mr. Raianu, “typified the religious minority exempt from ritual restrictions of caste and guild systems, much like European Jews.” And so they were more ready to look outward—to foreign opportunities—than the hidebound Indian business castes.

For the full review, see:

Tunku Varadarajan. “BOOKSHELF; From Homestead to Hegemony.” The Wall Street Journal (Wednesday, July 14, 2021): A15.

(Note: ellipses added.)

(Note: the online version of the review has the date July 13, 2021, and has the title “BOOKSHELF; ‘Tata’ Review: From Homestead to Hegemony.”)

The book under review is:

Raianu, Mircea. Tata: The Global Corporation That Built Indian Capitalism. Cambridge, MA: Harvard University Press, 2021.

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