COMMERCE EDUCATION MILESTONES INDIA

The discipline of commerce in India has evolved through a long and rich historical process, closely tied to the country’s economic and industrial growth. Commerce education in India has passed through ancient trade systems, colonial influences, and modern institutional development, growing into one of the most significant streams in the Indian education system.

1. Early Trade Practices and Ancient Foundations

The origin of commerce in India can be traced back to ancient times, when economic transactions were based on the barter system. In this system, goods and services were exchanged directly without the involvement of money. The people of the Indus Valley Civilization (circa 2500 BCE) practiced organized trading, exchanging agricultural produce, pottery, and handcrafted items with neighboring regions. As trade expanded, the limitations of the barter system led to the adoption of more standardized mediums of exchange.

Initially, cowry shells served as a form of primitive currency. As civilizations advanced, these were replaced with metallic forms of money such as metal cowries, silver coins, and eventually gold coins. Some rulers also experimented with leather money, marking an early transition to more formal economic instruments.

India’s geographical location played a critical role in its emergence as a hub of international trade. It established robust maritime and land-based trade routes, fostering commercial links with ancient civilizations like Mesopotamia, Egypt, Rome, and China. Goods such as spices, textiles, ivory, pearls, and precious stones were highly sought after in global markets. Ports like Lothal in Gujarat served as important trading centers, while overland routes connected India with Central Asia and the Middle East, laying the early groundwork for commerce as a structured economic activity.

2. Pre-Independence Institutional Developments

The formalization of commerce education in India began during the British colonial period, particularly towards the late 19th and early 20th centuries, driven by the growing need for trained professionals in trade, banking, and administration.

• In 1886, the first commerce school in India was established in Chennai (then Madras) by the Trustees of Pachiyappa’s Charities, marking the beginning of structured commerce education.
• By 1896, two additional commercial institutes were founded—one in Calicut and another in Kerala, reflecting early regional efforts in southern India to expand vocational learning.
• In 1903, Presidency College, Kolkata, a prestigious institution in eastern India, introduced commerce as a subject, paving the way for academic commerce education in Bengal.

• In 1912, another commercial institution was set up in Bombay, followed by the formal introduction of commerce in Delhi.
• The most significant milestone came in 1913, with the establishment of the Sydenham College of Commerce and Economics in Bombay. This became the first higher education institution solely dedicated to commerce, offering graduate-level programs that laid the foundation for modern business studies in India.

During this period, Madras Presidency emerged as a pioneer in commerce education, actively supporting the institutionalization of commercial studies, and setting a precedent for other regions to follow.

3. Government and Policy Interventions (1920s–1940s)

The period from the 1920s to the 1940s was marked by significant policy reforms and educational interventions, which reinforced the importance of commerce education in response to India’s growing industrial and administrative needs.

• The establishment of the First Fiscal Commission in 1921–22 was a turning point. The commission recommended comprehensive strategies to strengthen key industries such as iron and steel, cotton, jute, sugar, and tea—industries that required commercial expertise in finance, marketing, and logistics.

• The Hartog Committee Report (1929) suggested diversified curricula at the secondary school level, emphasizing the inclusion of bookkeeping and accountancy as essential subjects for practical education.

• In 1935, the Central Advisory Board of Education (CABE) officially recommended bookkeeping and accountancy for incorporation into school curricula.
• By 1936, a committee on vocational education advocated for the introduction of commercial subjects alongside other vocational streams, recognizing the need for job-ready skills in a changing economy.
• In 1939, the Registered Accountant Examination was introduced, creating a formal path for certification in accountancy and professional finance.
• The Sargent Report (1943–44), commissioned by the Government of India, proposed the creation of academic and technical high schools, both of which were to include bookkeeping as a core subject. This was in recognition of the growing demand for semi-professional and clerical manpower in industry and government.

Together, these interventions laid a strong academic and policy-based foundation for the structured growth of commerce education across schools and colleges in India.

4. Growth of Professional Commerce Bodies

The period between 1920 and 1953 saw the rapid institutionalization of commerce as a profession, with the establishment of national bodies dedicated to training, certifying, and regulating professionals in finance, accounting, banking, and insurance.

• In 1926, the Indian Institute of Bankers was established to provide structured training and professional certification for those working in India’s growing banking sector.
• In 1934, the Institute of Chartered Accountants of India (ICAI) was founded. Although it gained statutory status only in 1949 through an Act of Parliament, it remains the apex regulatory body for chartered accountancy in the country.
• The Institute of Cost and Works Accountants of India (ICWAI) followed in 1944, focusing on cost accounting and financial management—a critical area in post-war industrial planning and budgeting.
• In 1955, the Federation of Insurance Institutes was formed to meet the educational and training needs of professionals in the expanding insurance industry.

These institutions not only enhanced the credibility and scope of commerce as a career, but also helped standardize professional education, creating a structured pathway for aspirants to enter various fields of commerce and finance. They contributed immensely to making commerce a recognized and respected academic and professional discipline in India.

5. Post-Independence Development and Expansion

Post-1947, commerce education became a priority area, driven by industrialization, economic planning, and the techno-managerial revolution. It transformed from a subject into a full-fledged faculty in universities across India. In 1949, the Registered Accountants Examination officially became the Chartered Accountancy examination under the Act of Parliament.

The Secondary Education Commission formally introduced commerce as a stream in secondary education, which included:

• Commercial Practice
• Bookkeeping
• Economics and Civics
• Shorthand and Typewriting

6. Commerce at School Level and Teacher Education

To meet the growing demand for trained commercial personnel, commerce was introduced at school level:

• Initially through short-hand and typing in government and aided schools.
• Later as a formal subject in the school curriculum.
• New Education Policy (10+2+3 pattern) ensured commerce had sufficient place in secondary and higher secondary education.

By 1957, the Central Advisory Board of Education recommended training in bookkeeping and accountancy for commerce teachers. In 1961, the CABE proposed four regional training colleges, and in 1964, the teaching of commerce was formally introduced in these colleges.

7. Modern and Recent Developments

The turn of the century brought prestigious institutions such as the Indian School of Business (ISB), established in 2001, which quickly gained a place among the top 20 global business schools in Financial Times’ MBA rankings (2012). It offers postgraduate, executive, and doctoral programmes in business and commerce.

Today, commerce education is offered at:

• School level (10+1 and 10+2)
• Undergraduate and Postgraduate levels
• Professional and doctoral levels

CBSE and other boards have made Business Studies, Accountancy, and Economics key subjects in the school curriculum.

India now boasts one of the largest systems of commerce education in the world, with millions of students enrolled in commerce streams and thousands of institutions across states.

CONCLUSION

The historical evolution of the commerce discipline in India reflects a steady progression from traditional trade practices to a comprehensive academic and professional field. From the establishment of the first commerce school in Chennai to the rise of world-class institutions like ISB, India’s commerce education has grown in depth, reach, and reputation. Today, it stands as a vital pillar of the country’s educational and economic framework, preparing skilled professionals to drive business, industry, and public services forward.

ALSO STUDY:	ALSO STUDY:	ALSO STUDY:	ALSO STUDY:
Features of commerce	Scope of Commerce	Nature of Commerce	Historical Background of Commerce Discipline