British Policies and Their Impacts on India

Questions and Answers

How did the British revenue system between 1765 and 1793 affect agricultural practices in India?

The British imposed high cash revenue, forcing villagers to grow cash crops like jute and cotton instead of food crops.

What were the two main uses of revenue collected from Bengal by the British East India Company?

The revenue was used to pay military and government costs, and to finance the British East India Company.

Describe the impact of the famine in 1770 on the Indian population.

The famine resulted in the deaths of one third of the population in Bengal, highlighting the dire consequences of British policies.

What was the role of zamindars in the revenue collection system under British rule?

Zamindars collected taxes on behalf of the government and kept a part as their commission. Signup and view all the answers

What change in payment method did the British implement that exacerbated the financial struggles of Indian villagers?

The British required payments in cash instead of in-kind, which increased financial pressure on villagers. Signup and view all the answers

What were the two primary features of the Permanent Settlement introduced by Lord Cornwallis?

Permanent ownership of land and fixed revenue. Signup and view all the answers

What impact did the oppressive revenue collection methods of the East India Company have on peasants during the late 18th century?

Peasants were forced to grow cash crops leading to food shortages and often had to mortgage or sell their lands. Signup and view all the answers

How did the Treaty of Allahabad (1765) affect the East India Company's revenue collection process?

It granted the Company the right to collect revenue from Bengal, Bihar, and Orissa. Signup and view all the answers

Explain why Warren Hastings' experiment of auctioning revenue collection rights failed.

New zamindars had no permanent interest in the land and did not invest in its improvement. Signup and view all the answers

What was the primary use of the revenue collected from the territories conquered by the Company?

It was used to cover military and administrative costs and finance trading activities. Signup and view all the answers

Study Notes

Indian Economy Before the British

Predominantly rural economy with over 95% of the population residing in villages.
Villages operated as self-sufficient economic units, primarily based on agriculture and handicrafts.
Villagers produced goods for local consumption and some for trade, relying minimally on external resources.
Revenue collection was mainly through agricultural produce and sometimes in cash, collected by tax officials or zamindars (landlords).

British Revenue System (1765-93)

Revenue collection methods were harsh, inherited from the Mughal Empire, leading to struggles, especially during crop failures.
High interest rates and forced loans from moneylenders exacerbated villagers' financial burdens.
The devastating famine of 1770 in Bengal resulted in the death of one-third of the population.
British revenue practices ultimately harmed the Indian economy and hindered the British East India Company’s financial stability.

Utilization of Land Revenue

The Treaty of Allahabad granted the British East India Company the right to collect revenue from Bengal, Bihar, and Orissa.
Shift from traditional methods to cash payments led villagers to cultivate cash crops instead of food crops, causing food shortages.
From 1765-1793, the Company paid £400,000 annually to the British government as "home charges."
Revenue from Bengal funded military and administrative costs, while also financing the Company’s operations and industrial purchases in England.

The Permanent Settlement (1793)

Introduced by Lord Cornwallis to stabilize revenue inflow with permanent land ownership and fixed revenue.
Zamindars became hereditary owners of land, often leading to exploitation of cultivators who had to pay rent.

Revenue Systems

Ryotwari System recognized the cultivator as the landowner as long as the revenue was paid directly to revenue officials.
Mahalwari System involved collective ownership of land by village communities, with revenue collected by the mahal head.

Drain of Wealth

Described by Dadabhai Naoroji as a continuous extraction of wealth from India to England, negatively impacting the economy.
British officials’ salaries and material resources were predominantly funded through Indian revenues, reinforcing economic disparity.

Spread of English Education in India

Wood's Despatch in 1854 aimed to reform education, focusing on anglicizing Indians to serve British interests.
English education led to the emergence of a new educated class that began to recognize the need for social and political changes.
English became a unifying medium for diverse linguistic regions, fostering a spirit of nationalism.

Rise of the Capitalist Class

The British East India Company amassed significant wealth, contributing to the establishment of a capitalist class in India.
Improved communication systems (like railroads) facilitated trade and fostered a sense of unity among Indians while serving British strategic interests.

Great Debate Over Education

Opposing opinions on education emerged, with one group advocating for traditional Indian education and another supporting Western education.
Introduction of Western education was formalized in 1835, promoting the use of Western science and ideals.

Interesting Fact

India's first train journey occurred on April 16, 1853, traveling from Bombay to Thane with 400 guests, marking a milestone in transportation history.

Description

This quiz explores the Indian economy before the arrival of the British, highlighting the rural nature of society and the self-sufficient village economies. Participants will learn about agriculture, trade dynamics, and the overall economic framework that existed prior to British colonialism.