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They began to realize the uselessness of the constitutional methods. The young leaders like Tilak, Lala Lajpat Rai, Bipin Chandra Pal and Aurobindo Ghose were dissatisfied with the working of the moderate Congressmen. The Congress maintained her attitude of moderation till the end of the nineteenth century. They also failed to draw attention of the common masses at large and were confined mostly to educated middle class and the elite population. However they failed to achieve desired aims largely due to their method of work. The only achievement of the moderate leaders of the Congress was the exposure of the true nature of British imperialism and creation of a national awakening. They demanded the promotion of Indian industries through tariff, protection and direct economic aid. The early nationalists were very critical of the exploitative economic policy of the British and blamed it for India’s economic impoverishment and destruction of its cottage industries. The basic demands of the Congress at this time were constitutional that stressed on larger share of the Indians in the governance of the country, Indianization of higher grades of service, expansion of the legislative council and its power and Swaraj or self-rule within the British Empire. They all believed in constitutional method and favoured the policy of protest, prayer and petition. They did not approve of active response policy. Banerji, Gopal Krishna Gokhale who dominated Congress policies during this time were staunch believers in liberalism and moderate politics and came to be labelled as moderates.
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The national leaders like Dadabhai Nauroji, P.N. It did not challenge the British authority but adopted a constitutional path. The leadership was confined to a handful of educated middle class Indians who drew inspiration from western, liberal and radical thought. During this the Congress worked for limited objectives and concentrated more upon building up its organization. The first phase of the existence of the Congress is known as the moderate phase (1885-1905). The final stage (1919-47) was dominated by the objective of ‘Purna Swaraj’ or complete independence to be achieved under the leadership of Mahatma Gandhi.
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The new group came to be called the Extremist party. They advocated the adoption of Swaraj as the goal of the Congress to be achieved by more self-reliant and independent methods. The second state (1905-18) witnessed the emergence of a new and younger group within the Indian National Congress which was sharply critical of the ideology and methods of the old leadership. The movement was confined to a handful of the educated middle class intelligentsia who drew inspirations from western Liberal and Radical Thought. It may be referred as the period of Moderate politics. In the first stage of its existence (1885-1905), the vision of the Indian National Congress was dim, vague and confused.
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The basic objectives of the early nationalist leaders were to lay the foundations of a secular and democratic national movement, to polticize and politically educate the people, to form the headquarters of the movement that is to form an all-India leadership group, and to develop and propagate an anti- colonial nationalist ideology. Anandacharlu, Surendranath Banerjea, Romesh Chandra Dutt, Ananda Mohan Bose and Gopal Krishna Gokhale. Some of the great presidents of the congress during the early phase were Dadabhai Naoroji (elected thrice), Badruddin Tyabji, Pherozshah Mehta, P.