The Political Economy of Opium Smuggling in Early Nineteenth Century India: Leakage or Resistance?

Abstract This article looks at the political economy of opium smuggling in India in the first decades of the nineteenth century, in particular in relation to Sindh, one of the last independent polities in the subcontinent. After a description of the smuggling of ‘Malwa’ opium (grown in the princely states of Central India) into China—in defiance of the monopoly of the East India Company over ‘Bengal’ or ‘Patna’ opium, grown in Bihar—it considers the role of Indian merchants and capitalists in its emergence and development, and critiques the argument put forward in a recent book by Amar Farooqi that it represented both a form of ‘subversion’ and that it contributed decisively to capital accumulation in Western India. This article concludes by analysing the role of the opium trade in integrating Sindh into the British imperial trading system, arguing that it was more effective in boosting Empire than in nurturing indigenous capitalism in India.