The Permanent Settlement system, introduced by Lord Cornwallis in 1793, was implemented in British India primarily to stabilize revenue collection and encourage agricultural productivity. Several factors led to its introduction:

1. **Revenue Stability:** The British East India Company sought a predictable revenue stream to fund its operations and maintain control. The Permanent Settlement aimed to fix land revenue payments in perpetuity, providing stability to landlords and avoiding frequent revenue assessments.

2. **Encouragement of Investment:** By granting hereditary rights to landlords, the British hoped to incentivize them to invest in land improvements and agricultural productivity. They expected that secure property rights would lead to increased land development and thus higher revenue.

3. **Administrative Efficiency:** The settlement aimed to simplify revenue administration by reducing the need for constant reassessment and litigation over land revenue issues.

However, the consequences of the Permanent Settlement system were mixed:

1. **Landlord Dominance:** It entrenched the power and influence of landlords, often at the expense of tenant farmers who had insecure rights and were subject to exploitation.

2. **Agricultural Stagnation:** Instead of promoting productivity, landlords often focused on rent extraction, leading to agricultural stagnation in many areas.

3. **Social Inequality:** The system exacerbated social inequalities by concentrating wealth and power in the hands of a few landlords, perpetuating a feudal-like structure.

In summary, while the Permanent Settlement system aimed to stabilize revenue and encourage investment, its consequences included perpetuating social inequality, hindering agricultural progress, and consolidating landlord power, which shaped agrarian relations in India for decades to come.