When a young lawyer named Mohandas Karamchand Gandhi arrived in Durban in 1893 on a seemingly routine legal assignment, he had no idea this journey would transform him from a struggling barrister into one of history’s most influential figures. His twenty-one years in South Africa became a crucible where the principles of nonviolent resistance were forged, tested, and refined against the harsh reality of colonial oppression.

Table of Contents

The foundations of indentured servitude

The story begins decades before Gandhi’s arrival, rooted in the economics of colonial agriculture. Between 1860 and 1911, over 152,000 Indian indentured workers made the arduous journey to the British colony of Natal to work primarily on sugar plantations. European planters in Natal faced a critical labor shortage-the indigenous Zulu population showed little interest in wage labor on the plantations, viewing agricultural work as women’s domain and having no cultural framework for contract employment.

The solution came through an agreement between the British and Indian governments. Indian laborers, derogatorily called “girmitiyas” or “coolies,” were recruited under five-year contracts with promises of wages, small land parcels, and potentially a return passage home. The reality was far grimmer. These workers endured harsh conditions, received meager wages, and frequently faced physical violence with no recourse to justice.

What made the system particularly insidious was the choice offered at the contract’s end. Workers could re-indenture for another term, return to India, or remain as “free” laborers in South Africa. This final option would become the flashpoint for decades of conflict.

The unexpected rise of Indian enterprise

Something remarkable happened that the colonial architects hadn’t anticipated. Many freed indentured laborers, rather than returning to India or re-indentured servitude, chose to stay and build new lives. They moved into market gardening, introduced new vegetable varieties to the region, and made existing crops more affordable. Some opened small businesses and shops.

They were soon joined by a wave of free Indian businessmen, particularly Muslim merchants from Mauritius and Gujarat, who had paid their own passage to South Africa. These “passenger Indians” brought business acumen and cultural sophistication. They established successful trading networks and, crucially, developed comfortable commercial relationships with native Africans who mistrusted white traders.

By the 1890s, this economic success had become impossible to ignore. Indian traders were thriving, their children were being educated in English-medium schools, and some were accumulating considerable wealth. What the white settlers had envisioned as temporary labor was transforming into a permanent, prosperous community.

The perceived threat

This prosperity triggered alarm among white settlers. The Wragg Commission of 1885-87 found that Indian traders were responsible for “much of the irritation existing in the minds of European Colonists”. The fear wasn’t just economic competition-it was the specter of a non-white population gaining financial and social standing in what whites considered their domain.

The machinery of legislative oppression

When Natal gained self-governance in 1893, the colonial government swiftly enacted laws designed to contain and control the Indian population. The legislation was comprehensive and devastating in its scope.

The Immigration Law Amendment Bill of 1895 mandated that Indians either return to India after their five-year indenture, re-indenture for two more years, or face a crippling annual poll tax. The tax was set at ยฃ3 per person-an amount that seems modest until you understand the economics. An indentured laborer earned roughly 14 shillings per month. The ยฃ3 annual tax therefore consumed nearly five months of a laborer’s entire yearly income.

For a family of four-husband, wife, and two children over thirteen-this meant an annual burden of ยฃ12. It was, as Gandhi would later write, “atrocious, and unknown anywhere else in the world.” The tax wasn’t meant to generate revenue; it was designed to make survival impossible, forcing Indians back into indenture or out of the country entirely.

Dismantling political rights

The Franchise Amendment Bill of 1894 moved to eliminate Indians’ political voice. Despite only 300 Indians having the vote compared to 10,000 white voters, even this limited representation was deemed unacceptable. The legislation sought to strip Indians of parliamentary franchise rights they had enjoyed as British subjects under the Royal Charter of 1850.

Gandhi’s transformation from lawyer to leader

This brings us back to that pivotal moment in 1894. Gandhi had completed his legal work and was preparing to return to India. At his farewell dinner, he happened to read a newspaper article about the pending Franchise Bill. In an instant, the shy lawyer grasped the implications-this was, as he said, “the first nail into our coffin.”

When Gandhi explained the consequences to his fellow Indians that evening, the farewell party transformed into a working committee. The guests pleaded with him to stay and lead their resistance. Gandhi agreed to remain for one month. That month would extend to twenty years.

Organizing resistance

Gandhi’s approach was methodical and multi-pronged. That very night, he drafted a petition and established a temporary committee. Within days, volunteers had collected 500 signatures. Gandhi then led a delegation to meet with the Natal Governor, urging him not to approve the bill.

But Gandhi’s masterstroke was the massive petition to Lord Ripon, the British Secretary of State for Colonies, bearing 10,000 signatures and collected within a month. This document, distributed in a thousand copies across India and Britain, represented the first time Indians in South Africa had organized on such a scale. Even The Times of London acknowledged the justice of the Indian claim.

The initial victory was significant-the British government blocked the bill. However, this success proved temporary. In 1896, the Natal Legislature found a workaround, passing legislation that didn’t specifically mention Indians but simply disqualified anyone “not of European origin.”

Building institutional resistance

Gandhi recognized that sporadic opposition wouldn’t suffice. On August 22, 1894, he helped establish the Natal Indian Congress, the first permanent political organization dedicated to protecting Indian rights in South Africa. It was modeled after the Indian National Congress founded a decade earlier in Bombay.

The organization required a minimum annual subscription of ยฃ3-ironically, the same amount as the oppressive poll tax-which limited membership largely to the merchant class. Nevertheless, within a month, about 300 Indians from diverse backgrounds-Hindus, Muslims, Parsees, and Christians-had joined. The Congress met monthly to discuss current affairs, coordinate legal challenges, and even promote self-improvement through debates on topics ranging from sanitation to business practices.

The persistent struggle against the tax

The ยฃ3 poll tax remained Gandhi’s persistent concern. When the Natal government initially proposed a ยฃ25 tax, Gandhi and the Congress mobilized immediate opposition, successfully getting it reduced to ยฃ3. But Gandhi understood this was no victory-it remained a crushing burden for laborers earning less than a pound per month.

For twenty years, abolishing this tax remained a central goal. It wasn’t until 1913, when the Satyagraha campaign expanded to include the tax as a key demand, that real progress occurred. When tens of thousands of Indian laborers went on strike, bringing sugar mills, produce markets, and essential services to a standstill, the colonial government finally capitulated.

The birth of satyagraha

While Gandhi’s organized resistance succeeded in raising awareness and temporarily blocking legislation, the colonial government found indirect methods to restrict Indian trade, immigration, and rights. Registration requirements, literacy tests, trading license denials based on dubious sanitation grounds-the discrimination was comprehensive and creative.

These obstacles forced Gandhi to develop new forms of resistance. The concept of Satyagraha-literally “truth force”-emerged from these South African struggles. Unlike “passive resistance,” which Gandhi felt implied weakness, Satyagraha was active, principled, and powerful. It required practitioners to resist injustice by refusing to follow unjust laws while accepting the consequences without anger, violence, or retaliation.

The philosophy crystallized through experience. When Gandhi was thrown off a train at Pietermaritzburg for refusing to leave a first-class compartment, when he was beaten by a stagecoach conductor, when he was pushed off sidewalks-each humiliation became a lesson in the power of principled resistance. He came to understand that exploitation requires the consent of both exploiter and exploited. By withdrawing that consent through nonviolent means, fundamental change became possible.

The human cost and ultimate victory

The path from that 1894 farewell dinner to the 1914 Indian Relief Act was marked by immense suffering. Thousands of Indians were imprisoned, many were beaten, and several lost their lives in police violence during strikes and marches. Gandhi himself was arrested numerous times, spending months in prison under hard labor.

But the resistance persisted. In the monumental 1913 campaign, approximately 50,000 indentured laborers went on strike, and Gandhi led historic marches from Newcastle into the Transvaal, deliberately violating immigration laws. Women, including Gandhi’s wife Kasturba, joined the movement after a court ruling invalidated all non-Christian marriages.

The British government, embarrassed by reports of violence against peaceful protesters and facing uproar in India, forced negotiations. In January 1914, Gandhi and General Jan Smuts reached an agreement. The Indian Relief Act abolished the ยฃ3 poll tax, recognized Hindu and Muslim marriages, and eased some immigration restrictions. While it didn’t end all discrimination, it represented a significant victory achieved through organized, nonviolent resistance.

What do you think? How did Gandhi’s experience with the economic oppression of indentured laborers shape his understanding of colonial exploitation? Could the organized resistance against the ยฃ3 tax have succeeded without the involvement of both the merchant class and indentured laborers working together?

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References
  1. https://sahistory.org.za/people/mohandas-karamchand-gandhi
  2. https://www.striking-women.org/module/map-major-south-asian-migration-flows/indentured-labour-south-asia-1834-1917
  3. https://journals.openedition.org/samaj/3762
  4. https://sahistory.org.za/article/natal-indian-congress-nic
  5. https://nvdatabase.swarthmore.edu/content/indians-south-africa-wage-satyagraha-their-rights-1906-1914
  6. https://sahistory.org.za/archive/44-gandhi-explains-satyagraha

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Gandhi's Economic Thought

1 Basics of Modern Economics

  1. Economic Thought before Economics
  2. Classical Economics
  3. Basics of Modern Economics

2 Critique of Modern Economics

  1. Critiques of Economics Discipline
  2. Critiques on British Economic Policy
  3. Gandhiโ€™s Critique of Modern Economics

3 Indigenous and External Influences

  1. Indigenous Influences (Ethical and Spiritual)
  2. Indigenous Influences (Persons)
  3. External Influences

4 Encounter with Colonialism and Poverty

  1. Colonialism (South Africa)
  2. Colonialism (India)
  3. Understanding Poverty

5 Bread Labour

  1. Ruskin on Work and Bread Labour
  2. Impact of Leo Tolstoy
  3. Manual Labour
  4. Intellectual Labour
  5. Motivation for Work
  6. Components of Labour
  7. Shadow Work and Subsistence Works
  8. Value-in-Use and Value-in-Exchange

6 Self-reliance and Self-sufficiency

  1. Swadeshi, Swadharma, Swabhava
  2. Not against Foreign Trade
  3. Principle of Neighbourhood
  4. Self-reliance: A Moral Imperative
  5. Economics of Khadi
  6. Essence of Swadeshi
  7. Swadeshi: Some Misunderstandings
  8. Contemporary Relevance

7 Trusteeship

  1. Trusteeship – Roots in Indian Cultural Heritage
  2. Kinds of Property
  3. Spirit of Japanese Nobles (Samurai)
  4. State Regulated Trusteeship
  5. Trusteeship Formula
  6. Criticism

8 Preferences, Utilities and Wants

  1. Maximum Satisfaction from Limited Resources
  2. The Affluent Society
  3. Problem of Scarcity
  4. Limitations of Human Wants
  5. Wants are Sources of Pain
  6. Killing of Wants
  7. Doctrine of Non-Possession
  8. Criticism

9 Machinery and Industrialisation

  1. Gandhiโ€™s Concept of Machine
  2. Technique of Production: Man vs. Machine
  3. Evil Effects of Machinery
  4. Industrialisation
  5. Gandhiโ€™s views on Industrialisation
  6. Small Industries in Industrialisation process in India

10 Economics of Non-Violence

  1. Meaning of Non-violence
  2. Sources of Violence in Economic Order
  3. Preparing for Nonviolent Direct Action and Economy
  4. Basis of Non-violent Economic Order
  5. Satyagraha-Technique of Non-violent Direct Action
  6. The Non-violent State

11 Khadi and Village Industries

  1. Industrial Civilisation
  2. Why Village Industries?
  3. Swadeshi, Sarvodaya and Constructive Programme
  4. Cottage Industries
  5. Spinning-Wheel (Handlooms and Weaving)
  6. Khadi/Khaddar Economics
  7. Other Village Industries

12 Gandhian Economists

  1. Principles of Gandhian Economics
  2. J.C.Kumarappa
  3. E F Schumacher
  4. J K Mehta
  5. Shriman Narayan

13 Decentralisation

  1. Decentralisation โ€“ Meaning and Dimensions
  2. Evils of Centralisation
  3. Advantages of Decentralisation
  4. Structure of Decentralisation- Gandhian approach
  5. Requirements for the Success of Decentralisation
  6. Decentralisation in India โ€“ Present Status

14 Agrarian Economy and Cooperatives

  1. Recent Global Development Scenario
  2. Agrarian Structure in India
  3. Growth Performance of Agriculture
  4. Technology
  5. Factors Responsible for Poor Performance
  6. Indebtedness, Credit Markets and Institutions
  7. Challenges before Agriculture Sector
  8. Farmersโ€™ Suicides
  9. Question of Food Self-sufficiency, Security and Sovereignty
  10. Cooperatives in India
  11. Cooperatives in Independent India
  12. Basic Elements of Co-operatives in India
  13. Agriculture Cooperative Structure
  14. Agricultural Credit Structure
  15. Agricultural Non-Credit Structure

15 Sustainable Economy and Social Justice

  1. Sustainable Economy โ€“ Its Significance
  2. Social Justice โ€“ Its Necessity
  3. India โ€“ Past Profile
  4. Measures for Social Justice and Sustainable Economy
  5. Social Justice in the Indian Economy
  6. Future perspectives

16 Paradoxes of Development and Gandhian Alternatives

  1. The Dominant Paradigm of Development
  2. Promises of Development
  3. Discontents with Dominant Paradigm and Revisions
  4. Deficiencies of the Dominant Paradigm of Development
  5. Paradoxes of the Modern Paradigm of Development
  6. Gandhian Alternative