Why Telangana Suddenly Turned on Its Marwaris... Or Did It?

Secunderabad’s Monda Market is a typical city bazaar. It is narrow, congested and full of hustle and bustle with vehicles and people jostling for space. A good parking area is a luxury. Given the tight circumstances, arguments over who gets to keep his vehicle or a tiff over somebody’s bike getting a scratch are common. Over the years, people have accepted it as part of their life.

This August, things changed. A clash over parking between a Marwari and a local took a different turn. The issue did not remain within the confines of the bazaar. Videos of the altercation made their way to social media, sparking an online campaign calling for Marwaris in Telangana to go back.

They were accused of using bad business practices like selling counterfeit products, undercutting prices, making it difficult for locals to carry out business and eroding the state’s cultural identity.

The campaign got boosted by the support received from the Osmania University Joint Action Committee (a student collective, which has previously protested on identity related issues in Telangana, and had a role in the statehood movement). A bandh was called in Warangal district’s Amangallu.

This might make you think, are not the same kind of allegations made in other states with a large Marwari presence like Bengal? So what is different here?

The answer to that is that it was least expected in Hyderabad. Just a couple of months ago, Telangana’s chief minister, Revanth Reddy, was being praised for a post on X stating that irrespective of which language someone speaks, they are welcome in Hyderabad. His all embracing attitude was seen as a stark difference from what was happening in Maharashtra around that time, where workers of the Maharashtra Navnirman Sena were targeting those speaking Hindi.

Adding to this is that a large part of the city’s population is familiar with Hindi-Urdu and Marwaris have been part of the city’s social fabric for centuries, making this campaign puzzling to say the least. To understand why this sentiment is surprising, it is worth exploring the deep-rooted history of Marwaris in Hyderabad.

History of Marwaris in Hyderabad: Nizam Era to Present

The first few Marwari families migrated during the early years of Nizam rule in the 1700s. They took up businesses like jewellery and financing. Descendants of these early migrants from Rajasthan can be found in areas like Begum Bazar, Kabutarkhana and Ghansi Bazar.

As Hyderabad boomed in the years after independence, first as the capital of united Andhra Pradesh and then as an IT hub, it naturally drew in more migrants from within the state and outside. These included the Marwari community, known for its business acumen. The already established families brought in their friends and relatives for assistance and over the years, these new migrants went on to establish their own shops.

As their numbers grew, the term Marwari began to be used loosely in Telangana, encompassing anyone from Rajasthan, not just the Marwar region.

The increasing population led to diversification from the traditional Marwari businesses of jewellery, sweets and clothes to newer ones like hardware, plywood, electricals, glass and even automobile showrooms.

Moving Beyond the City

As their familiarity with the state grew, they expanded into semi-urban and rural areas, where competition is lower. This is also where the major pushback has come from as the few existing players do not want new entrants in their area.

A dealer for a two-wheeler company in Hyderabad’s Ramkote, whose family has been in the state for three generations, said, “We go wherever we spot a business opportunity. There is no other motivation. Rural areas are tougher, but we are ready to adapt. To be honest, the city has reached a saturation point and in such a situation, if more Marwaris open shops here, it is going to be their fellow Marwaris who would lose out.”

Other Marwari businessmen who this writer spoke to echoed the same. “We understand that nobody would like a competitor to set up shop in his vicinity. Healthy business rivalry is fine. It happens amongst us too. But asking us to leave is not right. This is a free country. We are not doing something that is against the law.”

Apart from the reduced competition, smaller towns also offer larger spaces and better investment opportunities for the Marwaris. Many of them come from rural, agricultural backgrounds and miss the open environment back home.

“The older generations find it difficult to live in cramped spaces inside the cities. For them, apartment life is stifling. Thus, places that are a bit away from the city, like Ghatkesar or Rajendra Nagar, become quite suitable. They give the feeling of being in a town,” said a shop-owner in Annojiguda, located on the Uppal-Ghatkesar route that connects the city with Hanamkonda.

Money Saved is Re-Invested

Explaining the math, a businessman from Keesaragutta said, “I can rent a large shop for Rs 40,000 a month here. The same would cost me not less than Rs 80,000 to 1 lakh in the city, depending on the area. In a competitive market, I am unlikely to make more money than what I make here by being there. So, the money saved can be used to bring in more goods or purchase real estate.

Using a parameter frequently used by analysts to pick stocks, he said, “My return on capital employed (ROCE) is more than 25 per cent. It thus makes perfect sense for me to move out of the city, put the money I save on rent back into the business and create a virtuous cycle of compounding.”

Another shop-owner with a similar story said, “We still continue to do business in the city. But we bought a house in a village and converted the ground floor into a shop and godown. My son takes care of the shop in the city and I look after this one.”

Familiar Yet Strange

Beyond their business ventures, the Marwaris’ social integration in Telangana reveals a complex dynamic.

As a trading community, the Marwaris interact with common people on a daily basis. There is an exchange of thoughts with other shopkeepers during market committee meetings. While ladies, especially those who have migrated recently, have not been very successful at learning the language, the menfolk and children speak Telugu quite well.

While this gives an impression of the community having largely been successful at integrating itself, the general feeling amongst the Telugu population is that they largely keep to themselves.

“Now that they have a large population, they tend to stick together a lot more. I, for example, do not have any Marwari friends in spite of being born and brought up in the state. The women do not venture out much and remain stuck with Hindi alone, making it difficult for them to mingle with locals. Interactions with them remain at the business level. That is all. That makes some amongst us feel that they are familiar, since we have grown up around them, yet strangers in some ways,” said a Hyderabad based journalist.

Not Too Worried

Business owners this writer spoke with said that the clash was unnecessarily escalated. “What was a one-off incident has been turned into something against an entire community. The common people do not have anything against us. They continue to interact with us as before. Some mischievous elements who do not want us to thrive are behind this,” is the common refrain.

Marwari professionals this writer spoke with however raised questions over the involvement of the OUJAC and suspected a hand of the Left. “For them, we are part of the bourgeois class, which they do not like.”

Asked if the Congress government had a hand in it, given the rise of linguistic tensions in neighbouring Karnataka under their rule and their caste rhetoric, they said that they did not think it to be the case. “The Telangana psyche is different. There is not so much insecurity over language.”

Others asked this writer where they would go back to. “Telangana is our home too. Many of us do not have properties in Rajasthan. We do not have anything to return to.”

On Locals Feeling Threatened

“Well, that is because Marwaris are more tactful in doing business. They do a lot more hard work. They keep their shops open the whole day and are not distracted by too many social occasions like family functions. The locals are not as hardworking as them. It is thus obvious that their businesses would not flourish as well,” said a Siddipet based Telugu acquaintance of this writer.

“Marwaris often go the extra mile when it comes to customer service. If needed, a shopkeeper will come with you to help you load a heavy item like a water tank. Locals may not be so willing to do that if their staff is absent,” he said, giving an example.

The Marwari Routine Compared to a Local Shop Owner

Giving this writer an idea of how Marwaris approach their business compared to the average locals, an assistant professor in Jodhpur whose father and brother run a hardware shop in Hyderabad said, “They get up at 5.30 to 6 AM in the morning. After having tea, they leave for the shop and open it by 7 to 7.30 AM to cater to the early customers like painters and electricians who are on their way to construction sites. Their breakfast is delivered at the shop by a staff member. During the afternoon, they may go home briefly for lunch. Usually, even lunch is delivered to them. Towards the evening, some ladies too lend a helping hand, as that is when most of the business happens. The day’s business ends around 10 to 11 PM.”

Local businessmen often start later in the day, take lunch breaks and sometimes close their shops for a few hours. Unlike Marwaris who prefer to be hands-on, they are more easy-going and are open to delegating work.

“This makes a difference. A customer will stick with someone whom he finds to be more reliable and available at all times of the day.”

Asked about the complaints of Marwaris selling counterfeit products, he said that there are some businessmen who may have indeed resorted to such shady practices, but that does not mean that everyone from the community was doing it. "The market is the ultimate decider. If it was such a rampant practice, we would be out of business by now."

Better sales also help them to procure products at a cheaper price. When they sell more and pay the distributors on time, they are favoured and given discounts. They then pass on some of that to customers. It is a virtuous cycle.

Speaking of locals, he said, “It is not as if the locals do not do well. If they work hard, they too will prosper. Those who actually work hard do not complain. Many of them have flourishing businesses.”

The Hindutva Angle

The state’s firebrand Hindutva leaders, Union Minister Bandi Sanjay and former Goshamahal MLA T Raja Singh, were vocal opponents of the campaign. Standing with the Marwaris, who largely support the BJP, they called it a threat to Hindu unity and asked people to be cautious.

“Their statements were important,” said the Siddipet based acquaintance. “The reason for that was that people who are otherwise Hindutva-minded and put pictures of Akhand Bharat also fell for it, showing that when it comes to business, all these ideologies can be forgotten.”

State’s Complicated History with ‘Outsiders’, Protest Mode is Continuously On

The nature of Telangana’s politics has meant that there is some section of people who are always seen as different. After the Telugu speaking areas of the former Nizam state were merged with the Telugu speaking parts of Madras Presidency to form united Andhra Pradesh, Telangana was witness to the Idli Sambar Go Back movement. The reason for this intriguing name is that unlike today, Idli and Sambar were not common breakfast items in the Telangana region then.

Later came the Mulki rules, which brought in some restrictions when it came to college admissions and jobs in the Telangana region.

But now, with a separate state being achieved, attention has turned to the next outsider, Marwaris, say political observers.

What Makes Telangana Attractive?

Amongst southern states, Telangana holds a special place for Marwaris due to the long history of settlements. Language is not a big barrier, making initial days for a migrant easier compared to Tamil Nadu or even Andhra Pradesh.

This makes it simple for people coming straight from Rajasthan or states like Bengal (where the two-wheeler dealer's family came from) and Assam, which have a long-standing Marwari community. Then there are others, who have already been in the south, in states like Kerala or Karnataka and thus do not find it too difficult to set up shop in Telangana.

Business is More Competitive than Ever Before

Like neighbouring Karnataka, Telangana’s development has also been Hyderabad centric. While educated locals found jobs in the city’s IT, finance and other service sectors, others who were into agriculture had no option but to turn to business because of a lack of a large enough manufacturing sector.

Amongst Marwaris too, business is not an occupation limited to the traditional trading communities like Agarwals and Jains anymore. Brahmins, Rajputs and OBCs have also jumped on to the business bandwagon in Telangana.

With more and more people choosing to do business, competition has risen, leading to increased rivalries.

That said, it is not as if only the locals are having it tough. Not all Marwari businesses in the state have taken off. Some of them have failed in spite of their best efforts. People have even fled the state overnight due to huge debts piling up.

The hardware shop owner had the best parting remarks. “Success does not see whether my origin is from Telangana or Rajasthan. It comes to all those who work towards it.”