It was very unfortunate that Muslim League had demanded Pakistan, a separate country for Muslims. With time the demand became shriller. Efforts were made to persuade Muslim leaders to give up the demand but it did not work. The British had not agreed to the freedom for India on their own will. They had to yield to the pressure the world had created for it. British had accepted the two nation theory. They assured the Muslim leaders they would get a separate nation by dividing India in two parts. Since 1935 the demand for Pakistan had started to be made. British too wanted to show to the world how their departure would plunge India in horrible communal carnage.
British had been sinisterly instigating communal riots between Hindus and Muslims to prove their point that their presence in India was needed for peace. In August, 1946 Kolkata was in the group of communal hatred. A small incident sparked off riots at an unprecidented scale. 4000 died and more than 10,000 got injured. This macabre scene was of one year before independence was actually gained.
It had become clear that two nation theory needed to be accepted as a reality or the situation could go out of hand and the rivers of blood would flow. It took time for Kolkata to calm down to normalcy. But the feeling of hatred remained soaked up in the hearts. The members of a community won’t trust the ones from the other community. For industrial progress peace and brotherhood was a must but the trust had been lost. It could affect the big industries of Kolkata. The strikes and communal riots led to the fall down in the production of the industries.
During 1945 to 1948 G.D. Birla tried in his own way to see the nationalist sentiment displace the hatred from the minds of the people. Through newspaper articles he also pictured the economies of the two proposed nations to succeed united British India. He boldly predicted Hindu India would be more prosperous and stronger. At the same time he did not discount the possibility of Pakistan also becoming a strong prosperous country.
Gandhiji was dead set against the partition and he would not believe it could really happen. But Sardar Patel was more practical and knew it was inevitable. British had hinted that the states (princely) could join any part they preferred. Sardar Patel was trying to subdue to states that were showing the signs of going to Pakistan.
In the context of the division of the country Birla worked more closely with Sardar Patel because he was more favourable to Hindu India. But spiritually Birla remained closer to Gandhiji. Birla had his own thinking and priorities. Hinduist national thought was the need of the hour for the sake of the future. Congress Working Committee also depended on Birla to provide inputs about economic prospects in case of division. At the time of partition of India and Pakistan in respect of assets and liabilities Birla made a remarkable contribution in determining and assessing them.
Partition time
The partition happened. Communal carnage broke out at large scale. A million people died. Humans behaved worse then beasts.
Under the prime ministership of Jawaharlal Nehru first working government was formed. The government took over the reins of indpendent nation and Birla was asked to think of the essential things about the economic system of new nation. The economy of Punjab was shattered in the wake of large scale carnage and refugee influx and outgo. Birla suggested that in view of the serious food grain shortage long term planning was immediately required and public foodgrain distribution system needed to be implemented nation wide. That system was tried in Bengal sometime back.
There was gigantic task of rehabilitation of millions of refugees that had fled from Pakistan for India. The hair raising stories of mayhem and carnage revealed by them was making people feel outraged. There was dire need to apply balm to the hurt feelings and restore peace for the progress of the country. G.D. Birla applied himself to the task of providing succour to the refugees and rehabilitating them. He did whatever was humanly possible for him. Hindus were driven out of East Bengal (Then East Pakistan and now Bangladesh). Birla’s airline ferried as many refugees as it could from East Bengal. In refugee camps his men distributed floor and clothes. All his charity allocations of different enterprises were pooled to help the refugees.
At the suggestion of Birla the governments also opened help centres and camps. For relief and rehabilitation a joint committee was set up and in Birla Committee Lady Edvina Mountbaton was appointed as the president. To execute the relief works Birla Committee worked day and night. At his suggestion a long term rehabilitation and relief plans were drawn up. The number of the refugees was so large that the government could not handle it alone. Birla suggested the refugees be employed in the industrial units all over the country. He said they must work honestly and with dedication in rehabilitation work and leave the rest to Almighty.
G.D. Birla was then facing problems in his business and industrial works on the side. Many Kolkata plants and machinery had suffered damages in the riots. The textile mill plant and machinery had be relocated at Gwalior. Then there were problems in respect of cotton mills that fell in Pakistani Punjab and Sindh areas and Lahore. The 80 percent cash from Punjab & Sindh Bank branches were removed in time and that saved the huge liquid assets of United Commercial Bank. The banks were ordered to stop the public dealings as long as riot conditions prevailed and until economic situation stabilized. India affiliated banks were looted and their properties damaged with the connivance of the zealous officials of newly created Pakistan. Birla strongly demanded that the Indian banks suffering huge losses must be compensated by Pakistan.
The biggest loss the partition inflicted on Birla was Lahore situated ‘Satluj Cotton Mill’. In August, 1947 Birla had invested in it Rs. Three crores had invested in it. There was a stock worth 2 crores and one crore was put in permanent infrastructure. It had 4000 workers. When the riots broke out the miscreants looted the mill and then set it on fire. Birla had anticipated some such evil game and requested for the deployment of army there but no one paid heed. Later the mill was handed over to Ghulam Farid Latif, an industrialist of Punjab after it was seized by a fanatic Sheikh of Layalpur and the quarters for workers were locked by his goons and was later taken over by the government. Birla requested Nehru and Patel to talk to the Pak P.M. Liyaqat Ali and restore the mill to the original owner the Birlas. The effort bore fruit. The mill was given back to Birla with a condition that all the workers of the mill would be Muslims. The situation remained tense. At last, Birla had to tell Liyaqat Ali—’It would be foolish to continue the fight without solving the fundamental issues.’
Financial balance at the time of partition
Purely on economic and industrial calculation the partition proved hugely profitable to India according to Birla and in real statistics. Muslim League leaders had great expectations from British partiality to them in gaining larger land area including Kolkata and economically prosperous regions. But alert Indian leaders did their home work in partition formulae and minimised the damage. The major industries and economic zones remained in India and Pakistan got little. Consider the following figures to realise this :
❑ In undivided India there were 100 industrial units and 90.4% of them remained with us.
❑ In 1945 there were 14,650 industrial ventures under construction and only 1410 went to Pakistan which was only 9.5%.
❑ At that time industries employed 31,40,000 workers, India retained 30 lac jobs i.e. 90% of them.
❑ Then 22,650 joint stock companies existed and only 2600 of them went to Pakistan accounting for merely 1596 lac basic capital.
❑ 94.7% of the electricity production capacity stayed with India. Pakistan got only 5.3% power generation.
❑ In pre-partition Indian railways had a total of 41,141 miles of lines. India retained 34,157 miles of railway lines. Only 6891 miles went into Pakistan. India got 7,248 locomotive engines to Pakistan’s 1339. In India’s share come 20,166 passenger coaches and 2,10,799 goods wagons whereas Pakistan got 4281 passenger coaches and 40,221 wagons.
❑ 1659 textile complexes stayed in India and only 46 went to Pakistan. In the case of engineering units 1,734 factories remained in India and only 4 went in Pakistan’s share.
❑ 1009 chemical plants were inherited by India and merely 56 were the share of Pakistan.
❑ In united India there were 108 jute mills. In the division Pakistan got none. Out of 166 sugar mills Pakistan’s share was only 10. Out of 25 cement factories India retained 19. And 60% of the glass factories remained in India. In total there were 175 factories. All the 18 Iron and Steel plants remained in India. Out of the 46 match box manufacturing units only 2 went to Pakistan. India retained 28 die making factories and Pakistan got 4. To India 93 Pakistan’s share in rubber factories was 21. In case of heavy engineering plants India’s share was 30 to the Pakistan’s 4. Undivided India had the capacity of producing 36,854 vehicles and Pakistan had none when it came into existence.
But in some areas India had to face problems. In the case of jute India got the mills and the 70% of raw material producing area went to Pakistan.
