These thoughts crystallised at Allahabad Session (December, 1930) of the All India Muslim League, when Iqbal in the Presidential Address, forwarded the idea of a Muslim State in India:
I would like to see the Punjab, North-West Frontier Provinces, Sind and Baluchistan into a single State. Self-Government within the British Empire or without the British Empire. The formation of the consolidated North-West Indian Muslim State appears to be the final destiny of the Muslims, at least of the North-West India.
The seed sown, the idea began to evolve and take root. It soon assumed the shape of Muslim state or states in the western and eastern Muslim majority zones as is obvious from the following lines of Iqbal's letter, of June 21, 1937, to the Quaid-i Azam, only ten months before the former's death:
A separate federation of Muslim Provinces, reformed on the lines I have suggested above, is the only course by which we can secure a peaceful India and save Muslims from the domination of Non-Muslims. Why should not the Muslims of North-West India and Bengal be considered as nations entitled to self-determination just as other nations in India and outside India are.
There are some critics of Allama Iqbal who assume that after delivering the Allahbad Address he had slept over the idea of a Muslim State. Nothing is farther from the truth. The idea remained always alive in his mind. It had naturally to mature and hence, had to take time. He was sure that the Muslims of sub-continent were going to achieve an independent homeland for themselves. On 21st March, 1932, Allama Iqbal delivered the Presidential address at Lahore at the annual session of the All-India Muslim Conference. In that address too he stressed his view regarding nationalism in India and commented on the plight of the Muslims under the circumstances prevailing in the sub-continent. Having attended the Second Round Table Conference in September, 1931 in London, he was keenly aware of the deep-seated Hindu and Sikh prejudice and unaccommodating attitude. He had observed the mind of the British Government. Hence he reiterated his apprehensions and suggested safeguards in respect of the Indian Muslims:
In so far then as the fundamentals of our policy are concerned, I have got nothing fresh to offer. Regarding these I have already expressed my views in my address to the All India Muslim League. In the present address I propose, among other things, to help you, in the first place, in arriving at a correct view of the situation as it emerged from a rather hesitating behavior of our delegation the final stages of the Round-Table Conference. In the second place, I shall try, according to my lights to show how far it is desirable to construct a fresh policy now that the Premier's announcement at the last London Conference has again necessitated a careful survey of the whole situation.
It must be kept in mind that since Maulana Muhammad Ali had died in Jan. 1931 and Quaid-i Azam had stayed behind in London, the responsibility of providing a proper lead to the Indian Muslims had fallen on him alone. He had to assume the role of a jealous guardian of his nation till Quaid-i Azam returned to the sub-continent in 1935.
The League and the Muslim Conference had become the play-thing of petty leaders, who would not resign office, even after a vote of non-confidence! And, of course, they had no organization in the provinces and no influence with the masses.
During the Third Round-Table Conference, Iqbal was invited by the London National League where he addressed an audience which included among others, foreign diplomats, members of the House of Commons, Members of the House of Lords and Muslim members of the R.T.C. delegation. In that gathering he dilated upon the situation of the Indian Muslims. He explained why he wanted the communal settlement first and then the constitutional reforms. He stressed the need for provincial autonomy because autonomy gave the Muslim majority provinces some power to safeguard their rights, cultural traditions and religion. Under the central Government the Muslims were bound to lose their cultural and religious entity at the hands of the overwhelming Hindu majority. He referred to what he had said at Allahabad in 1930 and reiterated his belief that before long people were bound to come round to his viewpoint based on cogent reason.
In his dialogue with Dr. Ambedkar Allama Iqbal expressed his desire to see Indian provinces as autonomous units under the direct control of the British Government and with no central Indian Government. He envisaged autonomous Muslim Provinces in India. Under one Indian union he feared for Muslims, who would suffer in many respects especially with regard to their existentially separate entity as Muslims.
Allama Iqbal's statement explaining the attitude of Muslim delegates to the Round-Table Conference issued in December, 1933 was a rejoinder to Jawahar Lal Nehru's statement. Nehru had said that the attitude of the Muslim delegation was based on "reactionarism." Iqbal concluded his rejoinder with:
In conclusion I must put a straight question to punadi Jawhar Lal, how is India's problem to be solved if the majority community will neither concede the minimum safeguards necessary for the protection of a minority of 80 million people, nor accept the award of a third party; but continue to talk of a kind of nationalism which works out only to its own benefit? This position can admit of only two alternatives. Either the Indian majority community will have to accept for itself the permanent position of an agent of British imperialism in the East, or the country will have to be redistributed on a basis of religious, historical and cultural affinities so as to do away with the question of electorates and the communal problem in its present form.
Allama Iqbal's apprehensions were borne out by the Hindu Congress ministries established in Hindu majority province under the Act of 1935. Muslims in those provinces were given dastardly treatment. This deplorable phenomenon added to Allama Iqbal's misgivings regarding the future of Indian Muslims in case India remained united. In his letters to the Quaid-i Azam written in 1936 and in 1937 he referred to an independent Muslim State comprising North-Western and Eastern Muslim majority zones. Now it was not only the North-Western zones alluded to in the Allahabad Address.
There are some within Pakistan and without, who insist that Allama Iqbal never meant a sovereign Muslim country outside India. Rather he desired a Muslim State within the Indian Union. A State within a State. This is absolutely wrong. What he meant was understood very vividly by his Muslim compatriots as well as the non-Muslims. Why Nehru and others had then tried to show that the idea of Muslim nationalism had no basis at all. Nehru stated:
This idea of a Muslim nation is the figment of a few imaginations only, and, but for the publicity given to it by the Press few people would have heard of it. And even if many people believed in it, it would still vanish at the touch of reality.