The largest group of European Indians, however, are descendants of British men, generally from the colonial service and the military, and lower-caste Hindu or Muslim women. From some time in the nineteenth century, both the British and the Indian societies rejected the offspring of these unions, and so the Anglo-Indians, as they became known, sought marriage partners among other Anglo-Indians. Over time this group developed a number of caste-like features and acquired a special occupational niche in the railroad, postal, and customs services. A number of factors fostered a strong sense of commu-nity among Anglo-Indians. The school system focused on English language and culture and was virtually segregated, as were Anglo-Indian social clubs; the group's adherence to Christianity also set members apart from most other Indians; and distinctive manners, diet, dress, and speech contributed to their segregation.

During the independence movement, many Anglo-Indians identified (or were assumed to identify) with British rule, and, therefore, incurred the distrust and hostility of Indian nationalists. Their position at independence was difficult. They felt a loyalty to a British "home" that most had never seen and where they would gain little social acceptance. They felt insecure in an India that put a premium on participation in the independence movement as a prerequisite for important government positions. Some Anglo-Indians left the country in 1947, hoping to make a new life in Britain or elsewhere in the Commonwealth of Nations, such as Australia or Canada. Many of these people returned to India after unsuccessful attempts to find a place in "alien" societies. Most Anglo-Indians, however, opted to stay in India and made whatever adjustments they deemed necessary.

Like the Parsis, the Anglo-Indians are essentially urban dwellers. Unlike the Parsis, relatively few have attained high levels of education, amassed great wealth, or achieved more than subordinate government positions. In the 1990s, Anglo-Indians remained scattered throughout the country in the larger cities and those smaller towns serving as railroad junctions and communications centers.

Constitutional guarantees of the rights of communities and religious and linguistic minorities permit Anglo-Indians to maintain their own schools and to use English as the medium of instruction. In order to encourage the integration of the community into the larger society, the government stipulates that a certain percentage of the student body come from other Indian communities. There is no evident official discrimination against Anglo-Indians in terms of current government employment. A few have risen to high posts; some are high-ranking officers in the military, and a few are judges. In occupational terms, at least, the assimilation of Anglo-Indians into the mainstream of Indian life was well under way by the 1990s. Nevertheless, the group will probably remain socially distinct as long as its members marry only other Anglo-Indians and its European descent continues to be noted.

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