The many facets of Dr. John Mathai

Dr. John Mathai was a fascinating man. A powerful intellectual, with an equally powerful voice, he was a Director in the Tata Group for many years. He was also one of the principal authors of the Bombay Plan, which created a storm in India in the 1940s.

Dr. Mathai began his life as a lawyer, went on to earn his doctorate in Economics, and was then a Professor at Madras University, followed by a stint as Director General of Commercial Intelligence and Statistics. He joined the Tata Group in 1940, and was later appointed by JRD Tata as Vice-Chairman of Tata Steel.

The Bombay Plan, which he helped author, was quite extraordinary. This plan was developed in 1944 under the guidance of leading Indian Industrialists, including JRD Tata, GD Birla and Kasturbhai Lalbhai – well before the Government’s own first five-year plan was conceived. It called for massive investments in roads, railways and power – areas which are essential for our country’s progress even today. On account of its radical proposals, the plan caused great discomfiture to nearly everyone – British rulers, leftists, Gandhians and many businessmen. In its essence, the Bombay Plan reflected a view that industry should play a key role in national development, a theme which has always been central to the Tata Group.

In 1946, Dr. Mathai was invited to join Pandit Jawaharlal Nehru’s cabinet, in the Interim Government – a tribute to his capabilities. He joined as Minister for Railways and Transport, thereafter held the Commerce and Industry portfolio, and was then elevated to serve as Minister for Finance. But shortly thereafter, he developed differences with Prime Minister Nehru, because he felt that India was not ready for a Planning Commission in those early days. Therefore, he resigned from the Government as a matter of principle, and returned to the Tata Group in 1950.

During the next seven years, he was Director in Charge of Tata Steel and Tata Motors, and also for some years Chairman of the Sir Dorabji Tata Trust. He helped start the Demographic Research Institute in 1956, which is today the International Institute for Population Studies. He also helped establish the Tata Agricultural and Rural Training Centre for the Blind. He later became Chairman of the newly constituted State Bank of India.

Dr. Mathai was a powerful speaker, with a dignified demeanour. His colleague in the Tata Group, Sir Homi Mody, once said of Dr. Mathai – “He has got many natural advantages : face, figure, manner, voice, all that and invested with an air of profundity in everything he said. Even if Dr. Mathai said “Good Morning”, it sounded like a Papal benediction.”

Dr. Mathai called his years in the Tata Group the best part of his life. “The work was very interesting”, he said, and added, “they maintain a very high standard of business…not once was I asked to do anything which I could not justify to my conscience.” 

I often wonder how wonderful it would have been, to personally know and interact with this towering and versatile intellectual, who gave most of his life to the Tata Group and to the country he loved.