The Indian Muslim Salariat and The Moral and Political Economies of Usury Laws in Colonial India, 1855–1914

This article examines the long-term response of the Indian Muslim salariat to the lifting of usury laws in British India in 1855. The salariat were a group of urban professionals and landed gentry in north India who emerged after the uprising of 1857. They espoused a self-conscious brand of Islamic modernism, a central feature of which was a reinterpretation of Islamic traditions pertaining to ‘rent on money’ (interest/usury). Hitherto, Islamic legal rules authorizing interest/usury transactions had been context-dependent, but, motivated by the colonial state’s abrogation of usury caps and a critique of prevailing Islamic legal norms, the salariat articulated a context-free interpretation of interest/usury in which the two were made distinct. Henceforth, interest transactions among Muslims were acceptable, but ‘usurious’ moneylending, conflated with ‘Hindu’ moneylending, was condemned. This pro-interest, anti-usury programme frequently fused Islamic exegesis with readings from European political economy. In turn, the salariat crafted a vernacular political-cum-moral economy that they sought to propagate among the Muslim masses. Nevertheless, by 1914 the salariat had largely disavowed this programme, convinced that the colonial state’s revocation of usury laws had produced a Hindu–Muslim wealth gap. Now a new conception of an ‘Islamic’ economy, in which all interest was anathema, materialized.