The Natal Indian Congress (NIC) was established by Mahatma Gandhi in response to growing discrimination against Indian traders in the Natal Colony, which was part of the British Empire. At this time, there were several laws restricting the rights of Indians, particularly affecting their ability to trade and own property. Gandhi, who had arrived in South Africa in 1893, witnessed firsthand the injustices that Indians faced, and he recognized the need for a collective effort to address these issues. The founding of the NIC occurred at a gathering of Indian traders and professionals, who recognized that a unified voice was essential to combat the legislative and social discrimination they encountered daily.

Initially, the NIC focused on issues like taxation without representation and the need for legal protections for Indian businesses. Over the years, it became more involved in broader civil rights activism, advocating for social justice and equal treatment under the law. Gandhi's leadership brought a philosophical approach to these struggles, emphasizing nonviolent resistance and civil disobedience. This ideology would later influence global civil rights movements, making the NIC an important precursor to Gandhi's philosophy of Satyagraha, or 'truth force.'

The NIC served as a platform for negotiating with colonial authorities and organizing protests and campaigns against discriminatory laws. Its formation signified a turning point in Indian political mobilization in South Africa and helped set in motion a series of events leading to later movements for racial equality.