(By Dr. Suresh Khairnar, Nagpur, 3 September 2025)
On 4 September 2025, we pay humble respects on the 200th birth anniversary of Dadabhai Naoroji, the pioneer socialist of India and the "Grand Old Man of the Freedom Struggle."
Some may wonder at calling him the first socialist. Hence, I wish to elaborate.
The Parsis, to whom Naoroji belonged, were followers of Zoroastrianism. They migrated from Persia (modern-day Iran) during the 7th century CE and came to India. Today, the global Parsi population is roughly 100,000, of which around 75% live in India and the remaining in Pakistan and the UK. Interestingly, their numbers are declining because they neither accept converts into their faith nor encourage intermarriage. Because of this, the community also faces biological/genetic challenges due to inbreeding. This reality itself should caution modern-day proponents of racial “purity” or fascist ideas.
As early as 175 years ago, Dadabhai Naoroji initiated reforms within Parsi society. Along with his colleagues, he founded the Rahnumai Mazdayasan Sabha to modernize it. In 1848, at the young age of 23, he started the Literary and Scientific Society, and by 1849 this society had started six schools for women in Bombay.
He was also the first Indian to participate in the Socialist International Conference in Amsterdam in 1905, at the age of 80.
Naoroji’s 92-year-long life was dedicated to social reform, laying the foundation of India’s freedom struggle, opposing racial discrimination, and advocating for an egalitarian society at an international level.
So much so that European socialist Henry Hyndman was influenced by Naoroji’s famous Drain Theory. Hyndman even arranged in 1881 a possible meeting between Karl Marx and Naoroji, although it could not take place. Marx, in his writings on imperialism, had studied India’s exploitation by Britain, but his view was Eurocentric. Marx believed industrialization, after ending feudalism, would pave the way for socialism; hence, he supported industrialization.
Today, with Artificial Intelligence replacing human labor, we may face a new social and cultural crisis. Instead of dismantling capitalism, technology seems to be building a new kind of capitalism.
Naoroji’s Drain of Wealth Theory is often said to have parallels in Marx’s writings on India. Yet Marx, being Eurocentric, did not study Indian religion, caste, and society deeply. Naoroji, being Indian-born, localized this critique to reflect Indian realities.
However, his contemporary Jyotiba Phule (1827–1890), who was only two years younger, directly attacked caste in his works like Gulamgiri (1873) and his petition to the Hunter Commission (1882). These caste critiques are less visible in Naoroji’s writings—perhaps because, as a Parsi in cosmopolitan Bombay and briefly Dewan of Baroda in 1874, he preferred to focus on political and economic questions, rather than religious-social issues of Hindus.
While Marx (1818–1883), Engels (1820–1895), Phule (1827–1890), and Naoroji (1825–1917) were contemporaries, the limitations of 19th-century communication meant they could not share or exchange their ideas fully.
During the First War of Independence (1857), Naoroji was 32 years old.
At the founding of the Indian National Congress (1885), he was 60 years old.
He went on to become President of the Indian National Congress three times: 1886, 1893, and 1906.
He served briefly as Dewan of Baroda in August 1874 but resigned within a month.
He was the first Indian graduate of Elphinstone College (1845) and later the first Indian professor there (1854).
He worked in Cama & Co. (the first Indian firm in Britain) and later established his own cotton firm, Dadabhai Naoroji & Co. in England.
During this, he noticed closely the economic exploitation of India under colonialism, and began to document it with evidence. In 1854 he launched the Gujarati newspaper Rast Goftar (The Truth-Teller) and in 1851 founded the Rahnumai Mazdayasan Sabha to reform the Parsi community.
Thus, his long career truly spanned social reform, education, economics, politics, and nation-building.
After the Battle of Plassey (1757), British dominance spread. Lord Clive himself was stunned by the wealth of Bengal’s capital, Murshidabad.
By 1787, British records show that £300,000 worth of textiles were exported from Dhaka to England. But after Britain’s political control grew, crushing tariffs (by 1817) destroyed Indian exports. Meanwhile, Indian raw cotton was taken to British mills, manufactured into cloth, and re-exported cheaply back to India.
This early destructive tariff war resembles the kind of trade wars seen in modern times.
Naoroji highlighted these realities brilliantly. In 1870, he founded the East India Association in London (a year before Gandhi was born). At Caxton Hall, he exposed, using British financial records, how agriculture, mining, forests, and salt revenues from India were being drained off to Britain.
This became the intellectual economic foundation of India’s freedom struggle.
His main works were:
Poverty of India (1876)
Poverty and Un-British Rule in India (1901)
Here, he analyzed government budgets and statistics to show how British salaries, pensions, military expenses, and remittances drained India’s wealth. These became essential tools for later generations of Indian nationalists, as well as for anti-colonial struggles in Trinidad, Indonesia, Ghana, and elsewhere.
In 1892, Naoroji was elected as the first Indian Member of Parliament in Britain (Finsbury Central constituency, London).
Every moment of his parliamentary career was spent raising India’s concerns. He was able to present before the British public itself the injustices of colonial exploitation. His courage influenced not only Indians but also European socialists and American progressives who were beginning to critique imperialism.
Thus, Dadabhai Naoroji remains the pioneer socialist of India, the intellectual father of the freedom struggle, internationalist, reformer, and the "Grand Old Man of India."
On this bicentenary of his birth (1825–2025), we offer humble respects to this towering figure—who, from social reform within his community to exposing colonial exploitation, to raising India’s voice in the British Parliament, dedicated his entire life to truth, justice, and freedom.
Overall, Mr. Foster has showered well-deserved accolades on Dada Bhai Naoroji. However, he did not hold back from pointing out the shortcomings of Naoroji. Mr. Foster is perplexed by the lack of progressive action on the part of Naoroji about caste situation in India.
Below is a section of his article where Mr. Foster is politely articulating his perplexity regarding Naoroji’s lack of concern about the caste situation.
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Drain Theory and Intellectual Context
Naoroji’s Drain of Wealth Theory is often said to have parallels in Marx’s writings on India. Yet Marx, being Eurocentric, did not study Indian religion, caste, and society deeply. Naoroji, being Indian-born, localized this critique to reflect Indian realities.
However, his contemporary Jyotiba Phule (1827–1890), who was only two years younger, directly attacked caste in his works like Gulamgiri (1873) and his petition to the Hunter Commission (1882). These caste critiques are less visible in Naoroji’s writings—perhaps because, as a Parsi in cosmopolitan Bombay and briefly Dewan of Baroda in 1874, he preferred to focus on political and economic questions, rather than religious-social issues of Hindus.
While Marx (1818–1883), Engels (1820–1895), Phule (1827–1890), and Naoroji (1825–1917) were contemporaries, the limitations of 19th-century communication meant they could not share or exchange their ideas fully.
>>
In his remark, “he preferred to focus on political and economic questions, rather than religious-social issues of Hindus.”, perhaps Mr. Foster is being charitable. However, he rightly appears to be perplexed at the lack of concern about the caste situation in India, as he mentions about Jyotiba Phule’s direct attack on “caste in his works like Gulamgiri (1873) and his petition to the Hunter Commission (1882). These caste critiques are less visible in Naoroji’s writings ...”
Mr. Foster gives dates of birth & death of Naoroji as well as that of Phule to show how contemporaneous they were. Mr. Foster charitably attributed the lack of common ground among them to “the limitations of 19th-century communication ...”
I guess Dr. Ambedkar had rightly criticized Indians for hero-worshipping. When we want to praise a person, we tend to cover up his/her shortcomings. Politely acknowledging the failures of a historical person may humanize them more than deification.
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On Fri, 5 Sept 2025 at 12:07, Satinath Choudhary<sati...@gmail.com> wrote:
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(By Dr. Suresh Khairnar, Nagpur, 3 September 2025)
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Socialist Party (India)
Website: spi.org.in.
Facebook: facebook.com/socialistpartyindia
Twitter: twitter.com/spiinfo
Email: socialist...@gmail.com
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Below is a section of his article where Mr. Foster is politely articulating his perplexity regarding Naoroji’s lack of concern about the caste situation.
<<
Drain Theory and Intellectual Context
Naoroji’s Drain of Wealth Theory is often said to have parallels in Marx’s writings on India. Yet Marx, being Eurocentric, did not study Indian religion, caste, and society deeply. Naoroji, being Indian-born, localized this critique to reflect Indian realities.
However, his contemporary Jyotiba Phule (1827–1890), who was only two years younger, directly attacked caste in his works like Gulamgiri (1873) and his petition to the Hunter Commission (1882). These caste critiques are less visible in Naoroji’s writings—perhaps because, as a Parsi in cosmopolitan Bombay and briefly Dewan of Baroda in 1874, he preferred to focus on political and economic questions, rather than religious-social issues of Hindus.
While Marx (1818–1883), Engels (1820–1895), Phule (1827–1890), and Naoroji (1825–1917) were contemporaries, the limitations of 19th-century communication meant they could not share or exchange their ideas fully.
>>
In his remark, “he preferred to focus on political and economic questions, rather than religious-social issues of Hindus.”, perhaps Mr. Foster is being charitable. However, he rightly appears to be perplexed at the lack of concern about the caste situation in India, as he mentions about Jyotiba Phule’s direct attack on “caste in his works like Gulamgiri (1873) and his petition to the Hunter Commission (1882). These caste critiques are less visible in Naoroji’s writings ...”
Mr. Foster gives dates of birth & death of Naoroji as well as that of Phule to show how contemporaneous they were. Mr. Foster charitably attributed the lack of common ground among them to “the limitations of 19th-century communication ...”
I guess Dr. Ambedkar had rightly criticized Indians for hero-worshipping. When we want to praise a person, we tend to cover up his/her shortcomings. Politely acknowledging the failures of a historical person may humanize them more than deification.
To view this discussion, visit https://groups.google.com/d/msgid/socialist-party-india/CAFQoZO-N6j3uOVdrYvE1v8pOqTb-KqEt5WvNPrA%3D9yASHMUO7w%40mail.gmail.com.
With sincere greetings to all the wonderful people discussing here, I would like to clarify that this article has been written by Dr. Suresh Khairnar and Mr. Lesley Foster has helped in the translation of the same.Lesley is a he, not she and is now a Post graduate student. As I happen to know both of them, and is also very much interested in the current topic, I felt like clarifying this.ThanksManisha Banerjee