A NOTE ON THE “BUSINESS COMBINE’ IN INDIA — with Special Reference to the Nattukottai Chettiars 1.

SHǑJI ITǑ Article first published online: 6 MAR 2007 Issue DOI: 10.1111/j.1746-1049.1966.tb00484.x

The Developing Economies
Volume 4, Issue 3, pages 367–380, September 1966 Additional Information(Show All) How to CitePublication History

* This article is primarily based on the data up to 1963. For this study I am much indebted to Dr. V. Shanmugasundram, Head and Professor of the Department of Economics, University of Madras for his kind guidance and encouragement, especially when I was his student there between 1961 and 1963.

The history and present position of the business combines controlled by members of the Nattukottai Chettiar community in southern India have not been elucidated so far. Their business combines have many aspects common to the well-known business combines of northern India. But they possess distinct peculiarities relating to the leaders' characteristics. Through analysis of these peculiarities the present writer insists that there have been some defects in viewpoints and methodologies of the studies done so far on Indian business combines. Footnotes
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1 The Nattukottai Chettiar (or Chettyar) caste is the distinctive sub-caste of the Chetti (or Chetty) caste in southern India which is again a sub-division of the Vaisha order. 2 Edgar Thurston, Castes and Tribes of Southern India, Madras Government Press, 1909; W. Francis, Madras District Gazetteer, Madras Government Press, 1906, etc. 3 The Madras Province Banking Enquiry Committee Report, 1930; V. Krishnan, Indigenous Banking in South India, The Bombay State Cooperative Union, 1957; L. C. Jain, Indigenous Banking in India, London, Macmillan, 1929, etc. 4 Phillip Siegelman, “Colonial Development and the Chettyar: A Study in the Ecology of Modern Burma, 1850–1941,” University of Minnesota Ph. D. Thesis (University Microfilm Inc., Ann Arbor, Michigan), 1962; J. S. Furnival, Colonial Policy and Practice, New York, New York University Press, 1956; John F. Cady, A History of Modern Burma, New York,

p. 30. 1964. Chapter VII. Krishnan. Calcutta. 1953. 12 Phillip Siegelman. “Indo no Chu&#x030c. “Ownership and Control—II.) 15 A Savannatha Pillai.) 14 “Of all the indigenous bankers the Nattukottai Chettis are the most perfectly organised. 11 The indigenous bankers are a separate entity intermediate in nature and scale of operation between the money-lenders and the joint-stock bankers. 17 D.&#x030c.. 1964).. V. cit. and Present Condition of the Smaller Financial Groups in India). but their scale of operation is small. 1960. Vol. p. 1936. Business Organisation and Leadership in India Today. The carry on all the business of a modern bank. and the form of the enterprise is that of the traditional firm. 1956. Planning Commission. 5 Sh&#x006f. pp. “Written Statement of Evidence. 1958.—Chetia no Baai” (The Rise. (Report of the Committee on Distribution of Income and Levels of Living.&#x030c.) All that is available even in the recent so-called Monopoly Commission Report (Report of the Monopoly Inquiry Commission. the Vaishas dependent on one another. 460. (microfilm). Jain.” in The Madras Province Banking Enquiry Committee Report. p.. February.” in Simon Kuznetz ed. 19 Helen B. 11–12 (November-December. New Delhi. New Delhi. Hazari. 6 The report of the so-called Mahalanobis Committee. Jain. Part I: Distribution of Income and Wealth and Concentration of Economic Power. C. 8 V. etc.sh&#x006f. Gadgil. It&#x006f. Economic Growth: Brazil. Jain.&#x030c. Calcutta. . 1. 1170 ff. p. 185 ff. cit.sei to Genj&#x006f. Centre for International Studies. op. 7 L. C. Lamb. December 3. Vol.” (L. Burma's Currency and Credit. Nos. Natrajan. op. I. Duke University Press. 31. cit.&#x030c.. III. Ajia Keizai. Parts I and II. Development. The manifest result is that the Chettis are independent and self-reliant. For details.&#x030c. 1955. op.• • • • • • • • • • • • • • • Cornell University Press. 18 For the types of industry controlled by the business combines of northern India and their relative importance I am principally indebted to the following source. C. C. pp.. N. “Indian Economic Organisation. S. 13 “With the Chettis every married member is supposed to live on his own. Bombay. which was charged with the task of looking into the concentration of economic power in India. with Vaishas all the married members live a common life—all benefiting in the gain and suffering in the loss that befalls to any individual member. see S. 1755 ff. see L. 16 Regarding such matters as their family backgrounds. deals with as many as 25 large and small business combines. A Study of the Capital Market of Madras Presidency. Zaibatsu no S&#x006f. Orient Longmans Ltd. p.&#x030c. India. etc. pp. and their economic power.”The Economic Weekly. etc. p. U Tun Wai. the foundation and growth of the modern enterprises.” (L. C. R.. 36. 1965) is the simple information regarding two Nattukottai Chettiars combines.ji It&#x006f. R. K. Vol. Jain. 32. 9 The Madras Banking Enquiry Committee Report. Durham.. Japan. MIT. 10 M. but not one of the business combines of the Nattukottai Chettiars is included.