Economic Impact of British  Rule on India I

British government followed different land revenue systems in different parts of India. These systems were: Permanent settlement, Ryotwari & Mahal- wari. Permanent settlement was introduced in Bengal, Bihar, Odisha & Varanasi of

U.P. Under this system 19% area of entire British India was included. Ryotwari (approx. 51% area) system was in Madras, some parts of Mumbai, Eastern Bengal, Assam, Kurg. Mahalwari (30% area) system was in U.P, Central Province, Punjab. Hence it is clear that because of this, different classes were created in Indian peasantry.

British government followed different land revenue systems in different parts of India. These systems were: Permanent settlement, Ryotwari & Mahal- wari. Permanent settlement was introduced in Bengal, Bihar, Odisha & Varanasi of

U.P. Under this system 19% area of entire British India was included. Ryotwari (approx. 51% area) system was in Madras, some parts of Mumbai, Eastern Bengal, Assam, Kurg. Mahalwari (30% area) system was in U.P, Central Province, Punjab. Hence it is clear that because of this, different classes were created in Indian peasantry.

British government followed different land revenue systems in different parts of India. These systems were: Permanent settlement, Ryotwari & Mahal- wari. Permanent settlement was introduced in Bengal, Bihar, Odisha & Varanasi of U.P. Under this system 19% area of entire British India was included. Ryotwari (approx. 51% area) system was in Madras, some parts of Mumbai, Eastern Bengal, Assam, Kurg. Mahalwari (30% area) system was in U.P, Central Province, Punjab. Hence it is clear that because of this, different classes were created in Indian peasantry.

The Permanent Settlement (1793 AD) introduced by Lord Cornwallis and also known as Permanent Settlement of Bengal was an agreement between East India Company and Bengali landlords to fix revenues to be raised from the land. It is also known as Ist-e-Marari, Jagirdari, Maalguzari, Bishvedari etc.

The Permanent Settlement of Bengal stood on the following features -

It recognized the landlords as the proprietors of the land. It also recognized the rights of a hereditary successor or lawful successors of the landlords. The government believed that these landlords would remain faithful to the British.

The landlords were given the right to transfer or sell their land. All the rights of the landlords depended on their payment of the fixed revenue on the fixed date at the treasury of the government. All their rights ended if they failed to pay.

The total amount of revenue to be paid by each landlord for his Zamindari was fixed once for all.

It was agreed that the tax rate would not increase in the future.

During the first half of 19^th century, British policies have turned India as exporter of raw material and consumer of finished product. Also because of Industrial Revolution in Britain, new machines were invented which were used to make handicraft products which were not just cheap but also of good quality which lead to downfall in demand of Indian handicraft products in domestic market too. Already they were unable to sell Indian goods at Britain because of high tariffs. All this led to ruins of Indian handicrafts.

Commercialization of agriculture was the result of British rule in India in the 19th century. Farmers were forced to grow cash crops which were imported to Great Britain as raw materials of the English factories. The period also saw decline in urban population and destroyed domestic factories. Indians started producing crops for commercial use on a large scale. 19th-century agriculture became commercial due to the use of modern agricultural equipment. British rulers forced farmers to grow Indigo and other cash crops which can be used as a raw material for British manufactures. As a result urban population reduced and domestic Industries were destroyed.

During British Rule preference was given to invest in land by wealthy class is the reason for no independent development of industries.

The term “imperial preference” was applied for special privileges on British imports in India. Based on of this privilege, nominal duty was paid on British imports in India while India exports paid high duty in Britain.

By the late 17th century and early 18th century Bengal had begun to emerge as an essential source of supply that the East India company could purchase for sale in Europe. Goods purchased from Bengal included cotton, cloth, opium, salt- petre, sugar and silk.

Home charges referred to the expenditure incurred in England by the Secretary of State on behalf of Indian Government. Home charges consisted of :

Purchases of military stores.

Expenditure on India office establishment. Interest on debts.

Interest on railway capital investment. Non-effective charges of the army.

Pensions and gratuities payable in England to retired civil servants of the company.

Funds used for waging wars outside India by the British were not included in home charges.