sehepunkte 24 (2024), Nr. 9

Christina Lubinski: Navigating Nationalism in Global Enterprise

Before Siemens came into the picture, any message from Calcutta, the capital of British India, took weeks to reach London. This delay was a significant hindrance, particularly during the "Indian Mutiny" of 1857, as well as for all political and economic interactions between the colony and Europe. However, in 1870, thanks to the cooperation of three branches of Siemens and four governments, a telegraph line was established. This innovation reduced the time needed to transmit messages to just 28 minutes, revolutionizing communication. This iconic achievement underscores the tremendous importance of Indo-German business relations, which, despite interruptions caused by two world wars, continue to flourish to this day.

Rather surprisingly, Christina Lubinski, professor at Copenhagen Business School since 2019, is the first to give a comprehensive account of a century of not only economic interactions. Her expertise, particularly in family multinationals and small business enterprises contributes to the impressive quality of this volume. The book is divided in two main chapters, the first covering the second half of the 19th century up to the 1920s, the second investigates the period up to the 1980s. The focus is both on two major players, Bayer and Siemens, as well as the "bazaar trade", where small German firms proved particularly successful. The latter is much more than a mere footnote, as it was in this sector that the British lost the competition early on. For the average Indian, German presence on the subcontinent was less about electronics or dying goods and more in cutlery from Solingen, which won the cut-throat competition against British companies based in Birmingham or Sheffield. Indian nationalism favoured German products precisely because they came from outside the Empire. The colonial rulers' attempt to stigmatize German goods by insisting on the imprint "made in Germany" backfired and unintentionally created a globally recognized mark of superior quality. Equally interesting are the long-standing engagements of Bayer and Siemens in South Asia. Probably due to the availability of documentation, Bayer's story focuses more on actual market strategies in British India. In contrast, Siemens's business in India, which plays but a minor role in Werner Feldenkirchen's account of the company's history, is portrayed as part of a global strategy. [1]

World War I severed German exporters from lucrative markets abroad, and it took a while to re-establish networks. German nationals were banned from travelling British India until 1925, but German products remained in demand for several reasons. The independence movement, led by M.K. Gandhi, promoted any non-British business, even though the Weimar Republic did not share their aspirations. Shortly after the war, German companies re-entered the market through intermediaries, such as Dutch (Havero), Italian (G. Gorio) or Indian firms. From 1925, they set up their own branches in the subcontinent. Quickly, the subcontinent became Germany's fourth-largest overseas market. German cutlery made a return to the bazaars, now accompanied by gramophones, a significant success of the interwar period. German companies began training young Indians along their dual education system, which, unlike to Great Britain, allowed Indians to be easily admitted into German factories. From an Indian nationalist point of view, Germans were seen as developing Indian capacities, whereas the British were viewed as merely exploiting the colony. Nevertheless, German business remained hesitant in responding to any efforts to establish an "Aryan community".

With the outbreak of World War II, all German property in British India was put under the control of the Deputy Controller of Enemy Firms, and German nationals were interned. Some branches, such as Bayer's Chemdyes, managed to operate covertly under foreign strawmen for a few more months but were eventually shut down. Despite these closures, non-German employees of Bayer and Siemens founded new companies, such as Protos Engineering, which was essentially a continuation of Siemens India. It was reabsorbed by the parent company in the 1950s.

Lubinski's documentary findings, along with her skilful blending of big and small businesses with political events, provide an exemplary account of the years leading up to India's independence. During this period, the main political players were the colonial rulers, the colonized population, and a few foreign powers. Indo-German business relations became much more complex and multifaceted during the Cold War, as an independent, non-aligned India navigated major economic, financial, and political challenges. The re-establishment of German firms in the Indian Union mostly occurred within the framework of bilateral relations, addressing issues such as pre-war fund recovery, bilateral joint ventures, and tax matters. By 1956, however, Delhi faced a foreign currency crisis that required significant international assistance. In 1958, the Aid India Consortium was established by Western donors to raise funds and implied each donor's share in the Indian market. This move was countered by Moscow, making the Indo-German bilateral approach increasingly loosing importance. Unfortunately, publications that explore this complex development are not included in Lubinski's bibliography. [2] Furthermore, it would have been worthwhile to at least mention Indian business relations with the GDR, which were much less relevant economically, but carried political weight.

In sum, this book is a marvel, painting a fascinating picture of German business engagement in South Asia over a century, encompassing both major players and small companies. Economic interactions are intertwined with political changes, although Lubinski rightfully focuses on the lesser-known economic aspects, as the political side has been extensively covered by others. The sections detailing the period up to India's independence are particularly essential for anyone interested in Indian economic and political history and Indo-German relations.

Notes:

[1] Werner Feldenkirchen: Siemens. Von der Werkstatt zum Weltunternehmen, München 22003.

[2] John White: Pledged to Development. A Study of International Consortia and the Strategy of Aid, London 1967; Amit Das Gupta: Development by Consortia. International Donors and the Development of India, Pakistan, Indonesia and Turkey in the 1960s, in: Comparativ 19 (2009), 96-111.