Roadmap for Answer Writing Introduction Briefly introduce the British East India Company’s role in shaping colonial policies. Mention the shift in focus from subsistence agriculture to cash crops as part of the commercializing strategy. State the primary aim of this commercialization, which was to ...
Model Answer Disillusionment with the Permanent Settlement The Permanent Settlement introduced by Lord Cornwallis in 1793 aimed to stabilize revenue collection by assigning zamindars to collect fixed revenue. However, the system faced significant challenges: Loss of income for the Company: Fixed revRead more
Model Answer
Disillusionment with the Permanent Settlement
The Permanent Settlement introduced by Lord Cornwallis in 1793 aimed to stabilize revenue collection by assigning zamindars to collect fixed revenue. However, the system faced significant challenges:
- Loss of income for the Company: Fixed revenue rates led to financial strain as expenses rose, notably from 1798 to 1806 when military expenses diverted funds meant for trade goods【Fact 1】.
- Higher default by zamindars: The fixed tax burden led to widespread defaults, with 68% of zamindari land in Bengal sold between 1794 and 1819 due to the inability to meet tax demands【Fact 2】.
- No improvement in productivity: Zamindars, unmotivated by the fixed rates, did not invest in land improvements, failing to meet the British expectation of increased productivity.
- Peasant oppression: The system led to heavy rent burdens on peasants, who faced eviction and exploitation, resulting in widespread discontent.
Lessons Learned and Shift to Alternative Systems
The failures of the Permanent Settlement highlighted the need for more flexible and responsive land revenue models, which led to the development of alternative systems:
- Ryotwari System: Introduced in South India by Thomas Munro and Captain Alexander Read, this system established a direct relationship between the state and cultivators (ryots). It involved a field-by-field assessment, where revenue officials determined tax rates based on soil quality and land area. Unlike the Permanent Settlement, this system allowed for periodic revisions to adjust revenue demands.
- Mahalwari System: Developed by Holt Mackenzie and later modified by Robert Merttins Bird, this system assessed revenue collectively for a village or group of villages. Like the Ryotwari system, it allowed for periodic revisions to accommodate changing economic conditions.
These lessons from the Permanent Settlement led to more adaptable systems that aimed to reduce the oppressive impact on peasants while maintaining a steady revenue stream for the British.
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Model Answer The British East India Company's motivation to commercialize Indian agriculture had far-reaching and adverse effects on the rural economy, despite some apparent economic benefits to colonial interests. 1. Exploitation of Indian Agriculture for British Interests The Company’s primary aimRead more
Model Answer
The British East India Company’s motivation to commercialize Indian agriculture had far-reaching and adverse effects on the rural economy, despite some apparent economic benefits to colonial interests.
1. Exploitation of Indian Agriculture for British Interests
The Company’s primary aim was to exploit India’s agricultural resources for profit, with crops like raw cotton, opium, and indigo being cultivated for export to meet the needs of British industries. This commercialization was largely driven by the demand for these commodities in international markets, particularly in Britain and China. Revenue from agriculture funded the British administration and infrastructure projects, including the construction of railways【source: History of British East India Company’s Colonial Policies】.
2. Impoverishment and Indebtedness of Peasants
The commercialization of agriculture, however, led to the oppression of Indian peasants. Excessive taxation policies and high land revenue demands, such as the zamindari, ryotwari, and mahalwari systems, caused widespread impoverishment. This economic burden pushed many peasants into the clutches of money lenders, increasing rural indebtedness. For instance, the peasants in the indigo plantations were often forced into debt by the planters, who controlled credit and dictated the crops grown【source: Economic Consequences of British Rule in India】.
3. Neglect of Food Crops and Famine
With a focus on cash crops, such as opium and cotton, the production of essential food crops was significantly reduced. This shift disrupted the self-sufficiency of Indian villages, making them vulnerable to market fluctuations and famines. For example, between 1893 and 1945, the production of commercial crops increased by 85%, while food crop production fell by 7%, leading to frequent famines and agrarian unrest【source: Economic Impact of Commercialization in Colonial India】.
4. Disruption of Rural Markets
The commercialization of agriculture also stunted the development of essential rural markets. There was no free market for agricultural inputs or labor, as peasants were forced to work for low wages under coercive systems. Moreover, oppressive land revenue systems prevented the growth of a land market, which could have allowed peasants to gain land or better economic opportunities.
In summary, while the British East India Company benefited from the commercialization of agriculture, it had devastating consequences for India’s rural economy, leading to widespread poverty, indebtedness, and social unrest.
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