An examination of the traditional Indian social order (the caste system) from an economic perspective. A comment:

The benefit of the caste system was the division of people according to their tasks and professional groups: Brahmins (priests and teachers), Kshatriyas (warriors, nobility, higher officials), Vaishyas (traders, merchants, landowners), Shudras (craftsmen, day laborers) and - for the lowest tasks – the untouchables, also called pariahs or Dalits.

In a society without an institutionalized education system, it made sense and necessary to pass on knowledge and craftsmanship to the next generation. So the son always followed the father and took over his tasks and business. Over generations and many centuries, these social structures solidified into rigid castes.

Strictly speaking, the caste system is not all that dissimilar to the social structure of the European Middle Ages. Our society was also divided into nobility, clergy, bourgeoisie (traders and craftsmen), farmers and unfree people. The urban bourgeoisie was again organized through guilds, guilds or mines for various trades.

However, since in India, unlike Europe, there were never “real” revolutions (Enlightenment, 1789, 1848, 1968, etc.), these partly feudal structures, which seem backwards to us, extend into the 21st century and are still widespread today Sharing India – despite legal prohibitions – is a social reality.

In the big cities there is no longer any talk of caste and there are now impressive examples of successful entrepreneurs and millionaires who originally come from “low castes”.

But if you look at the origins of India's leading entrepreneurial families, you will see that there are still "remnants" of the caste system. For example: The Vaishyas include merchants, traders, moneylenders and large landowners. The Marwaris sub-caste is said to have particularly great commercial talent. The majority of India's largest corporations belong to Marwari families such as the Birlas, Bajajs, Goenkas, Poddars, Goyals, Bansals, Hindujas, Singhals, Jindals, Mittals or Aggarwals. These names may sound familiar to you if you are doing business in India.

These families and clans have cultivated entrepreneurial spirit and business acumen over centuries and passed their possessions from generation to generation, sometimes building huge companies and properties. FORBES now even runs its own list of “The 100 most important Marwari companies” under the name “Marwari Power”. Would you like some examples? Hindalco Industries, Grasim Industries, Bajaj Auto, Jindal Steel & Power, Lupine Pharmaceuticals, Shree Cement, Zee Entertainment, Welspun and so on and so forth.

In other words, Marwaris basically got business acumen with their mother's milk. So when you negotiate with them, you should be aware that you are dealing with professionals.

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