The term Marwari once referred to the area encompassed by the former princely state of Marwar, also called the Jodhpur region of southwest Rajasthan in India.

It formed from the two constituent words, Maru(region of Thar desert)[3] and Wadi(enclosure),[4] effectively indicating the western part of modern day Rajasthan.

The possible causes of this trait include the proximity of their homeland to the major Ganges - Yamuna trade route; movement to escape famine; and the encouragement given to them by various rulers of northern India who saw advantages in having their skills in banking and finance.

The changed focus of migration was also encouraged by the British, who established or patronised new trading routes and centres, as well as by the decline in the political significance of the Rajput courts whose famed conspicuous consumption had been supported by Marwari money.

The community welcomed the relative safety that the British presence offered, as well as the commercial and legal frameworks that they provided and which were more favourable to Marwari activities than the systems prevalent during the earlier period of Mughal and Rajput rule.

[citation needed] After the decline of Mughal authority, Marwari traders, bankers and financiers migrated to the growing British power in Calcutta.

[12] Although maintaining close and public ties with the British authorities, members of the Marwari business community were early financial supporters of the Indian National Congress, often in secret.

[12] In 1956, the All-India Marwari Federation opposed a linguistic organisation of states while buying up regional language newspapers in Maharashtra, Tamil Nadu and Andhra Pradesh.