R. K. Shanmukham Chetty
Encyclopedia
Sir Ramasamy Chetty Kandasamy Shanmukham Chetty KCIE
(b. October 17, 1892 – d. May 6, 1953) was an India
n lawyer, economist
and politician who served as independent India's first finance
minister from 1947 to 1949. He also served as President of India's Central Legislative Assembly
from 1933 to 1935 and Diwan of Cochin kingdom from 1935 to 1941.
Shanmukham Chetty was born in Coimbatore
in 1892 and studied at Madras Christian College
and Madras Law College. On completion of his education, Shanmukham Chetty joined politics and served both in the Indian nationalist Swaraj Party
as well as the pro-British Justice Party
. Shanmukham Chetty was elected to the Central Legislative Assembly
of India and served as its Deputy President from 1931 to 1935. On losing the 1935 elections, Chetty returned to South India where he served as Diwan of Cochin kingdom from 1935 to 1941. On India's independence in 1947, Jawaharlal Nehru
, the first Prime Minister of India
controversially chose Chetty as his Finance Minister despite the latter's well known pro-British leanings. Shanmukham Chetty died on March 3, 1953.
During his public life, Chetty also identified with a number of social causes. He was a strong supporter of the Tamil Isai Movement. Shanmukham Chetty was the Finance Minister of India when the country's first budget was tabled in Parliament on November 26, 1947.
in the middle of the 19th century. The family was involved in business and owned a number of mills in Coimbatore city.
Shanmukham Chetty had his schooling at Coimbatore. He studied economics
at Madras Christian College
and graduated in law
from Madras Law College. On completion of his graduation, Shanmukham Chetty did not join the bar. Instead, he took care of the family business and after sometime, entered politics.
and became a Councillor in the Coimbatore municipality in 1917. Soon afterwards, he was elected Vice-Chairman of the Coimbatore Municipality. Chetty is credited with having brought about some reforms in the municipal administration.
In 1920, Shanmukham Chetty participated in the Madras Presidency legislative council elections
and was elected to the Madras Legislative Council
. He served as a member of the Madras Legislative Council from 1920 to 1922, when he resigned. He joined the Swaraj Party
and was, in 1924, elected to the Central Legislative Assembly
, the newly inaugurated lower house of the Imperial Legislative Council of India. Chetty represented Indian employers at the International Labour Conference in Geneva
in 1928, 1929 and 1932. He was the Indian delegate at the Imperial Economic Conference held at Ottawa
in 1932.
In 1932, Shanmukhan Chetty was made Deputy-President of the Central Legislative Assembly and in 1934, made President, in succession to Sir Ibrahim Rahimtoola. Shanmukham Chetty served as President till 1935, when he had to quit his membership of the Central legislative Assembly after losing the 1935 elections.
During his tenure as member of the Central Legislative Assembly, Chetty is believed to have enjoyed the support of Lord Willingdom, who once, even referred to Shanmugham Chetty as his "god-son".
In 1938, Chetty visited Geneva as the Indian delegate to the League of Nations
. He was also India's delegate to the World Monetary Conference
at Bretton Woods in 1944. During this period, Shanmukham Chetty tried to revive the staggering Justice Party
but failed. For a short period, he served as constiutional advisor to the Nawab of Bhopal
. He also served as President of the Indian Tariff Board. Due to his pro-British views, Shanmukham Chetty was not included in the Constituent Assembly.
When India got independence on August 15, 1947, he is reported to have said
Due to his expertise in economics, Shanmukham Chetty was chosen by Jawaharlal Nehru
to be the Finance Minister in independent India's first cabinet. However, due to serious allegations of harboring a preference for Coimbatore mill-owners, Chetty was forced to quit after a short time. Shanmukham Chetty is, today, remembered for presenting the first budget of independent India on November 26, 1947.
Chetty returned to state politics and was re-elected to the Madras state legislative assembly in the 1952 elections as an independent candidate.
on June 3, 1933.
Order of the Indian Empire
The Most Eminent Order of the Indian Empire is an order of chivalry founded by Queen Victoria in 1878. The Order includes members of three classes:#Knight Grand Commander #Knight Commander #Companion...
(b. October 17, 1892 – d. May 6, 1953) was an India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
n lawyer, economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
and politician who served as independent India's first finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
minister from 1947 to 1949. He also served as President of India's Central Legislative Assembly
Central Legislative Assembly
The Central Legislative Assembly was a legislature for India created by the Government of India Act 1919 from the former Imperial Legislative Council, implementing the Montagu-Chelmsford Reforms...
from 1933 to 1935 and Diwan of Cochin kingdom from 1935 to 1941.
Shanmukham Chetty was born in Coimbatore
Coimbatore
Coimbatore , also known as Kovai , is the second largest city in the Indian state of Tamil Nadu. It is a major commercial centre in Tamil Nadu and is known as the "Manchester of South India"....
in 1892 and studied at Madras Christian College
Madras Christian College
The Madras Christian College, commonly known as MCC, is a liberal arts and sciences college in Madras , India. Founded in 1837, MCC is one of Asia's oldest extant colleges. Currently, the college is affiliated to the University of Madras, but functions as an autonomous institution from its campus...
and Madras Law College. On completion of his education, Shanmukham Chetty joined politics and served both in the Indian nationalist Swaraj Party
Swaraj Party
The Swaraj Party, Swarajaya Party or Swarajya Party, established as the Congress-Khilafat Swarajaya Party, was a political party formed in India in 1922 that sought greater self-government and political freedoms for the Indian people from the British Raj. It was inspired by the concept of Swaraj...
as well as the pro-British Justice Party
Justice Party (India)
The Justice Party , officially known as South Indian Liberal Federation, was a political party in the Madras Presidency of British India. The party was established in 1917 by T. M. Nair and Theagaroya Chetty as a result of a series of non-Brahmin conferences and meetings in the presidency...
. Shanmukham Chetty was elected to the Central Legislative Assembly
Central Legislative Assembly
The Central Legislative Assembly was a legislature for India created by the Government of India Act 1919 from the former Imperial Legislative Council, implementing the Montagu-Chelmsford Reforms...
of India and served as its Deputy President from 1931 to 1935. On losing the 1935 elections, Chetty returned to South India where he served as Diwan of Cochin kingdom from 1935 to 1941. On India's independence in 1947, Jawaharlal Nehru
Jawaharlal Nehru
Jawaharlal Nehru , often referred to with the epithet of Panditji, was an Indian statesman who became the first Prime Minister of independent India and became noted for his “neutralist” policies in foreign affairs. He was also one of the principal leaders of India’s independence movement in the...
, the first Prime Minister of India
Prime Minister of India
The Prime Minister of India , as addressed to in the Constitution of India — Prime Minister for the Union, is the chief of government, head of the Council of Ministers and the leader of the majority party in parliament...
controversially chose Chetty as his Finance Minister despite the latter's well known pro-British leanings. Shanmukham Chetty died on March 3, 1953.
During his public life, Chetty also identified with a number of social causes. He was a strong supporter of the Tamil Isai Movement. Shanmukham Chetty was the Finance Minister of India when the country's first budget was tabled in Parliament on November 26, 1947.
Early life
Shanmukham Chetty was born to Kandasamy Chetty in Vaaniar Street, Coimbatore on October 17, 1892. Shanmukham Chetty's grandfather Ramasami Chetty had migrated to CoimbatoreCoimbatore
Coimbatore , also known as Kovai , is the second largest city in the Indian state of Tamil Nadu. It is a major commercial centre in Tamil Nadu and is known as the "Manchester of South India"....
in the middle of the 19th century. The family was involved in business and owned a number of mills in Coimbatore city.
Shanmukham Chetty had his schooling at Coimbatore. He studied economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
at Madras Christian College
Madras Christian College
The Madras Christian College, commonly known as MCC, is a liberal arts and sciences college in Madras , India. Founded in 1837, MCC is one of Asia's oldest extant colleges. Currently, the college is affiliated to the University of Madras, but functions as an autonomous institution from its campus...
and graduated in law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
from Madras Law College. On completion of his graduation, Shanmukham Chetty did not join the bar. Instead, he took care of the family business and after sometime, entered politics.
Early political career
Shanmukham Chetty joined the Justice PartyJustice Party (India)
The Justice Party , officially known as South Indian Liberal Federation, was a political party in the Madras Presidency of British India. The party was established in 1917 by T. M. Nair and Theagaroya Chetty as a result of a series of non-Brahmin conferences and meetings in the presidency...
and became a Councillor in the Coimbatore municipality in 1917. Soon afterwards, he was elected Vice-Chairman of the Coimbatore Municipality. Chetty is credited with having brought about some reforms in the municipal administration.
In 1920, Shanmukham Chetty participated in the Madras Presidency legislative council elections
Madras Presidency legislative council election, 1920
The first legislative council election to Madras Presidency after the establishment of dyarchical system of government by the Government of India Act, 1919, was held in November 1920. Indian National Congress boycotted the election due to its participation in the Non-cooperation movement...
and was elected to the Madras Legislative Council
Madras Legislative Council
Tamil Nadu Legislative Council is the upper house of the bicameral legislature of the Indian state of Tamil Nadu. It began its existence as Madras Legislative Council, the first provincial legislature for Madras Presidency. It was initially created as an advisory body in 1861, by the British...
. He served as a member of the Madras Legislative Council from 1920 to 1922, when he resigned. He joined the Swaraj Party
Swaraj Party
The Swaraj Party, Swarajaya Party or Swarajya Party, established as the Congress-Khilafat Swarajaya Party, was a political party formed in India in 1922 that sought greater self-government and political freedoms for the Indian people from the British Raj. It was inspired by the concept of Swaraj...
and was, in 1924, elected to the Central Legislative Assembly
Central Legislative Assembly
The Central Legislative Assembly was a legislature for India created by the Government of India Act 1919 from the former Imperial Legislative Council, implementing the Montagu-Chelmsford Reforms...
, the newly inaugurated lower house of the Imperial Legislative Council of India. Chetty represented Indian employers at the International Labour Conference in Geneva
Geneva
Geneva In the national languages of Switzerland the city is known as Genf , Ginevra and Genevra is the second-most-populous city in Switzerland and is the most populous city of Romandie, the French-speaking part of Switzerland...
in 1928, 1929 and 1932. He was the Indian delegate at the Imperial Economic Conference held at Ottawa
Ottawa
Ottawa is the capital of Canada, the second largest city in the Province of Ontario, and the fourth largest city in the country. The city is located on the south bank of the Ottawa River in the eastern portion of Southern Ontario...
in 1932.
In 1932, Shanmukhan Chetty was made Deputy-President of the Central Legislative Assembly and in 1934, made President, in succession to Sir Ibrahim Rahimtoola. Shanmukham Chetty served as President till 1935, when he had to quit his membership of the Central legislative Assembly after losing the 1935 elections.
During his tenure as member of the Central Legislative Assembly, Chetty is believed to have enjoyed the support of Lord Willingdom, who once, even referred to Shanmugham Chetty as his "god-son".
Later political career
Chetty served as Diwan of Cochin from 1935 to 1941. During his tenure, new reforms were brought in the administration of the princely state. Chetty introduced schemes for the improvement of Cochin port. He also tried to do away with Hindu religious superstitions and introduce Periyar's schemes. Chetty returned to Madras in 1941 and was succeeded by E. F. W. Dickinson.In 1938, Chetty visited Geneva as the Indian delegate to the League of Nations
League of Nations
The League of Nations was an intergovernmental organization founded as a result of the Paris Peace Conference that ended the First World War. It was the first permanent international organization whose principal mission was to maintain world peace...
. He was also India's delegate to the World Monetary Conference
United Nations Monetary and Financial Conference
The United Nations Monetary and Financial Conference, commonly known as the Bretton Woods conference, was a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, to regulate the international monetary and financial order after...
at Bretton Woods in 1944. During this period, Shanmukham Chetty tried to revive the staggering Justice Party
Justice Party (India)
The Justice Party , officially known as South Indian Liberal Federation, was a political party in the Madras Presidency of British India. The party was established in 1917 by T. M. Nair and Theagaroya Chetty as a result of a series of non-Brahmin conferences and meetings in the presidency...
but failed. For a short period, he served as constiutional advisor to the Nawab of Bhopal
Nawab of Bhopal
The Nawabs of Bhopal were the Muslim rulers of the princely state of Bhopal, now part of the modern state of Madhya Pradesh, in India. The last Nawab was Hamidullah Khan, who acceded his state to India in 1947....
. He also served as President of the Indian Tariff Board. Due to his pro-British views, Shanmukham Chetty was not included in the Constituent Assembly.
When India got independence on August 15, 1947, he is reported to have said
Due to his expertise in economics, Shanmukham Chetty was chosen by Jawaharlal Nehru
Jawaharlal Nehru
Jawaharlal Nehru , often referred to with the epithet of Panditji, was an Indian statesman who became the first Prime Minister of independent India and became noted for his “neutralist” policies in foreign affairs. He was also one of the principal leaders of India’s independence movement in the...
to be the Finance Minister in independent India's first cabinet. However, due to serious allegations of harboring a preference for Coimbatore mill-owners, Chetty was forced to quit after a short time. Shanmukham Chetty is, today, remembered for presenting the first budget of independent India on November 26, 1947.
Chetty returned to state politics and was re-elected to the Madras state legislative assembly in the 1952 elections as an independent candidate.
Death
Shanmukham Chetty suffered a severe heart-attack on May 3, 1953. Though he recovered from the attack, his constitution had detiorated. He succumbed to a second attack on the evening of May 5, 1953.Honours
Chetty was made a Knight Commander of the Order of the Indian EmpireOrder of the Indian Empire
The Most Eminent Order of the Indian Empire is an order of chivalry founded by Queen Victoria in 1878. The Order includes members of three classes:#Knight Grand Commander #Knight Commander #Companion...
on June 3, 1933.
Further reading
- Business Legends by Gita PiramalGita PiramalGita Piramal is a renowned media personality, freelance writer, business historian, managing editor of The Smart Manager magazine, Director of BP Ergo and former director of VIP Industries Limited...
(1998) - Published by Viking Penguin India. - T. Praskasam by P. Rajeswara Rao under National Biography Series published by the National Book Trust, India (1972).