Born in a progressive Tamil Brahmin family, her father K. Venkataraman was one of India's leading chemists, and was the director of the National Chemical Laboratory.
After a childhood in Lahore where her father was professor, Dharma Kumar did her bachelor's in Economics from Elphinstone College, Mumbai. She then went to Newnham College, Cambridge for her Master's in Economics.
Shortly after Indian independence, Dharma returned from Cambridge in 1948 and joined the Reserve Bank of India. In 1951, she married Lovraj Kumar, India's first Rhodes scholar. Lovraj was a graduate of chemistry from Oxford and was then working for Burmah-Shell in Mumbai. He would subsequently become a senior bureaucrat, serving as secretary in the Ministry of Petroleum for many years.[4]
They had one daughter, Radha Kumar.[5]
After returning to India, she worked briefly as a consultant economist at the Indian Council for World Affairs and an economic historian at the University of Delhi's
Institute for Economic Growth. In 1966,
she joined the Delhi School of Economics.[6][7] She was also one of the founding members of an academic journal, Indian Economic and Social History Review, which she edited for more than thirty years. The journal brought out a memorial volume in her honour in 2002, edited by Sanjay Subrahmanyam.[8]
During the 1970s, she was also the co-editor, alongside Tapan Raychaudhuri, of the Cambridge Economic History of India.[9]
She was also active in the arts and the literary life of Delhi, and might have been portrayed in Vikram Seth's A suitable boy as the character Professor Ila Chattopadhya.[1] She was also associated with the magazine called Civil Lines.
Kumar retired from the DSE in 1993. She was diagnosed with a brain tumour in 1998, and underwent an unsuccessful operation, and died on 19 October 2001.