The concept of Nationalism is linked to the idea of sovereignty and therefore it has to be associated to the principle of self-determination. This research paper intends to analyse the social, economic and political factors that had inspired the people to define and achieve their national identity in the late 19th century. This study also interprets the course and reasons behind the process of struggle against colonialism. The study of nationalism is important to analyse world politics today and nationalism can be defined as either political or emotional to one�s nation or as a policy of national independence. Therefore a nation or the idea of nation must exist in order for a national identity to be founded. Indian nationalism developed as a concept during the Indian independence movement fought against the colonial British Raj. India has been unified under many emperors and governments in history. Ancient texts mention India under emperor Bharata. The Mauryan Empire was the first to unite all of India and South Asia. In addition much of India has also been unified under a central government by empires such as the Gupta Empire, Rashtrakuta Empire, Pala Empire, Mughal Empire, Indian Empire etc. Since the time immemorial India has been the abode of various castes and religions. There was no reason for the development of nationalism however the spirit of nationalism emerged in India owing to the impact of the British rule. The British regime created various differences among them as a result of which there emerged a spirit of nationalism in India. The first revolt of Indian independence and the rebellion of 1857 were mercilessly crushed by the English however, it aroused the country from the slumber and people began to make efforts for independence. No doubt the British authority made some dummy reforms to pacify the Indians and also started taking cooperation and support of the Indians in the administration of the country but this was not enough. The reality was that the speed of the reforms was too slow to satisfy the sentiments of nationalism. After the establishment of All Indian National Congress in 1885 various regional political organizations were established and these together contributed a lot to the national awakening in India. The second half of the 19th century witnessed he full flowering of national political consciousness and the growth of an organised national movement in India. Basically, modern Indian nationalism arose to meet the challenge of foreign domination. The very conditions of British rule helped the growth of national sentiment among the Indian people. It was British rule and its direct and indirect consequences which provided the material, and the moral and intellectual conditions for the development of a national movement in India. The consolidation of the British East India Company's rule in the Indian subcontinent during the 18th century brought about socio-economic changes which led to the rise of an Indian middle class and steadily eroded pre-colonial socio-religious institutions and barriers. The emerging economic and financial power of Indian business-owners and merchants and the professional class brought them increasingly into conflict with the British Raj. A rising political consciousness among the native Indian social elite including lawyers, doctors, university graduates, government officials and similar groups spawned an Indian identity and fed a growing nationalist sentiment in India in the last decades of the nineteenth century. The creation in 1885 of the Indian National Congress in India by the political reformer A.O. Hume intensified the process by providing an important platform from which demands could be made for political liberalisation, increased autonomy, and social reform. The leaders of the Congress advocated dialogue and debate with the Raj administration to achieve their political goals. Distinct from these moderate voices or loyalists who did not preach or support violence was the nationalist movement, which grew particularly strong, radical and violent in Bengal and in Punjab.