What was the relationship between national character, government, and civilization for James Mill? This article answers this question by focusing on Indian and British national characters. For Mill, Indian national character was unsuited to trigger the progress of civilization. He questioned how a society with a flawed character could be led toward improvement. This article underlines the importance of human agency for the progress of civilization in Mill’s thought. In order to cause progress, individuals had to voluntarily guide society toward improvement by embracing the principle of utility. Governmental action should create the conditions necessary to bring about individuals of suitable character. Members of the middle class could foster progress better than those of any other class. They could oppose the despotism of the aristocracy and be the driving force of civilization by voluntarily shaping their ideas in accordance with the public good.