Theme 5: CHAPTER 10 British Policies and Impacts

British PolicieS and Their Inmpact

Learning Outcomes

Land revenues systems introduced by British and their effects on people Impact of British economic policies on craft and industries in India Drain of wealth from India to England

Spread of western education in India

India changed in every sphere during the two

hundred years of British rule. However, impact in the economic sphere was felt earlier than impact in other spheres of life. This is because the British were

traders. They settled in India to make protits, even When the East India Company was granted the if that meant exploiting the locals. This attitude

However, with the advent of the British, there were

major changes in this economic set-up.

System of Revenue Collection

Diwani of Bengal, Bihar and Orissa (Odisha) did not change even when they became rulers of in 1765 by the Treaty of Allahabad, the major India and therefore, their economic policies had a concern of the Company's administration in huge impact on the lives of common people. India was to collect as much revenue as possible. Gradually, the Company wielded considerable Traditional Indian Economy

India was majorly an agricultural economy, even influence and acquired more areas from where before the British rule. A majority of the population lived in villages and only a small percentage lived in relied on traditional methods of revenue collection. towns, which were usually trading centres or capitals It imposed high revenue rates and collected

of their provinces or kingdoms.

revenue could be collected. The Company largely

payments in cash.

The villages were the self-sufficient units of Although native officials collected the revenue, production. Agriculture and handicrafts were the

Two main sources of livelihood of the people. The

Indian villages were occupied by farmers, potters, weavers, blacksmiths and carpenters.

it was the Company officials who supervised the process of collection. The British also realised that the countryside could not only yield revenue, but could also grow crops that Europe required. Towards the end ofthe eighteenth century, the Company was

trying its best to expand the cultivation of opium he only way that the villagers participated in the

arger economy was by paying taxes. Taxes were often paid in kind and were collected directly by the king's and indigo. The British thus persuaded or forced

cultivators in various parts of India to produce other officials. In some cases, zamindars collected taxes.

HISTORY 79

crops: jute in Bengal, tea in Assam, sugarcane in productivity of land

the United Provinces (now Uttar Pradesh), wheat Was not considered

in Punjab, cotton in Maharashtra and Punjab, and while bidding. Also,

rice in Madras. the contractors were

not interested in The policies of the British soon led to economic

crises in the Bengal, as the peasants were not able

to pay the high rates of taxes imposed on them

by the Company. Unable to meet the demands of

revenue by the Company officials, the peasants

were forced to borrow money from money lenders

at high interest rates. This pushed the peasants into

deep debts and were often forced to sell their land.

improving the quality

of the cultivated land

as they were not

sure of retaining the

contract in the next Warren Hastings auction.

PERMANENT SETTLEMENT

The Bengal famine of 1770 killed around 10

milion people and wiped out around one-third

population of Bengal. The main reason for this

famine was the agricultural crisis-replacing the

production of food crops with cash crops for

high returns to fulfil the high revenue demands

of the Company. This led to a shortage of tood

grains. Most importantly, the revenue incomne

from the provinces of Bengal, Bihar and Orissa

were not utilised for the welfare of the people of in 1793. It was

India. Most of it was sent to England in form

of goods that were purchased from the collected

To remove the

shortcomings of the

jaradari system, Lord

Cornwallis, Governor- General of British

India, introduced the

Permanent Settlement

or Zamindari System

was

initially introduced in

Bengal, and was later

extended to Orissa, revenue. In addition, resources in the form of Lord Cornwallis

Andhra Pradesh and salaries and incomes of the Company officials and

north-western parts of India. servants were also sent to Britain.

Features of Permanent Settlement

The revenue that the zamindars had to pay to With the Bengal economy in ruins, the Company's

income also suffered. There was an attempt by the

Company officials to encourage investment in land the Company was firmly fixed and would not

be raised under any circumstances. to improve agriculture.

The zamindars of Bengal, who collected the

In 1773, the Company decided to manage the land

revenue directly. Warren Hastings introduced the

ijaradari system of revenue collection. Under this

system, the right to collect revenue was auctioned

to the highest bidder for a term of five years.

However, this experiment failed as the actual

land revenue, were recognised as the owners or

the land as long as they paid the revenue to the

East India Company regularly.

In case the zamindars could collect more than the

prescribed revenue, they could keep the surplus.

80 HISTORY

The zamindars were given hereditary rights Most of the rich zamindars often left the rent

over the land. They could sell or mortgage the collection to agents as they were settled in

towns. These agents exacted all kinds of illegal

taxes besides the legal ones from the cultivators.

This resulted in a great deal of misery among

the peasants and farmers.

land.

The land cultivators became tenants of the

zamindars and lost their ancestral rights.

If a zamindar failed to pay the revenue, their

zamindari rights were auctioned off. During the Mughal period, a share of the

crop was fixed as land tax but the cultivator

enjoyed independence and was self-sufficient.

Through this system, the cultivators lost their

independence and self-sufficiency.

This settlement took away the administrative

and judicial functions of the zamindars.

Effects of Permanent Settlement

Cultivable area increased as many wastelands

was brought under cultivation.

The Permanent Settlement guaranteed In 1820, Sir Thomas Munro introduced the

stability of income through a steady flow of Ryotwari System in the Madras Presidency

RYOTWARI SYSTEM

fixed revenue. Later, it was extended to Bombay Presidency. Since there were no traditional zamindars in

It enabled the Company to maximise its

income as the revenue was fixed at a higher rate the south, settlements were to be made with the

cultivators or ryots who had cultivated the land

for generations. The Company officials carefully

surveyed their fields before fixing the revenue

in comparison to the past.

lecting taxes through a small number of

zamindars had become simpler and cheaper

for the Company rather than dealing with demand.

thousands of cultivators. Features of Ryotwari System

It createda new class ofloyalists for the British Under this settlement, the peasant or ryot was

recognised as the proprietor of the land, as long

as the revenue was paid on time. in the zamindars.

When the zamindars failed to pay, their property The peasants paid the revenue directly to the

revenue collectors. There was no intermediary

like a zamindar between the peasant and the

was seized and auctioned off.

The cultivators were oppressed and exploited

by the zamindars, who increased the rent

frequently and evicted the peasants if they failed

to pay. This led to widespread poverty among

government.

The land revenue was fixed for a period of

30 years at a time, after which it could be revised. cultivators.

The revenue was fixed at about half of the total lt was expected that the Permanent Settlement

would lead to an increase in the agricultural produce. The revenue was strictly collected and no

production. Since the revenue was fixed concession was given for failure of crops.

permanently, it would not be increased in

tuture, even if the zamindar's income went up. However, this system also failed. Under this

settlement, it was certainly not possible to collect This would encourage the zamindar to invest

in the land to increase agricultural production. HISTORY 81

revenue in a systematic manner.The revenue officials

indulged in harsh measures for non-payment or

delayed payment.

0ACTIVITY

Evaluate the Ryotwari and the Mahalwari systems. If

you were a peasant in British India and had to choose between these, which would you choose and why? MAHALWARI SYSTEM

The Mahalwari system was introduced in the

Central Provinces and parts of North Western Provinces and Punjab by Holt Mackenzie in During the cighteenth century, some of the main

1833

Indian Crafts and Industries

Features of Mabalwari System Under the Mahalwari system, the revenue

settlement was made with the entire village or

industries in India were textile, handicrafts and

other arts and crafts such as tannery, perfumery

and paper-making. Indian goods had a flourishing

market in the West, while Indian demand for

western products (like British woollens) was estate (mahal).

negligible. The head of the village collected the revenue

and gave it to the British oficials. India has been a major cotton-producing country since ancient times.It had an enviable trade in cotton

The entire land of the village was measured atextiles before the coming of the British. In fact, the the time of fixing the revenue. Indian textiles enjoyed worldwide reputation for

The revenue was not fixed and could be revised their excellence.

periodically. specialised eliminated craftsmen engaged in hereditary occupations (like

The weavers and artisans were

Though the Mahalwari system

middlemen between the government and the village weavers, goldsmiths, potters, and blacksmiths).

community and brought about improvement in

irigation facility, yet its benefit was largely enjoyed

by the government.

Indian artisans were organised into guilds that

protected their interests and controlled prices and

quality of goods. All these manners of revenue collection affected the

poor peasants. They remained perennially excluded In the seventeenth and eighteenth centuries, three

from any control over and. This caused grievances

amongst the members of the rural society.

kinds of industry existed in India.

The rural cottage industry such as weaving. pottery, and carpentry which provided for the

day-to-day requirements of the agriculturists in

the village.

The zamindari system introduced by the

Permanent Settlement of Bengal and the Ryotwari

System marked a fundamental departure from the

traditional land system of the country. Land now

became a commodity that could be sold, mortgaged,

The urban domestic industry producing various products, such as fine textiles for the

or rented out. This was primarily done for the

government's revenue. This shook the stability and

continuity of the Indian villages.

use of townspeople, and carried on by family

members, possibly in a room in the house where the family lived.

The small urban factory or royal karkbanas which produced luxury items of fine textiles such

82 HISTORY

as silks, chintz and muslin, jewellery, ivory, etc.

for the royal households and the world market. the fine Indian goods. This led the British

government to impose heavy duties on Indian

textiles entering England. DECLINE OF TRADITIONAL

The British in India exported raw cotton and

silk, which were urgently required for the rising

British industry.

HANDICRAFT INDUSTRY AND TRADE

However, things changed with the Industrial Revolution in Europe. The Indian industry declined in the nineteenth century. While India

enjoyed 17.6 percent of the world's industrial

production in 1830, Britain's share was 9.5 percent. urther, with the rise of British, the process

By 1900, India's share had declined to 1.7 percent while Britain's had grown to 18.6 percent.

The Company also did

development of industries in India.

not promote

of decline in the power and status of Indian

rulers had set in. Thus, demands for domestic

luxury goods by the Indian royalty also reduced

drastically. So, with the decline of the traditional dynasties, the craftspersons also lost the royal

There are many factors attributed to this decline.

Owing to industrialisation, British textile

productivity improved qualitatively and quantitatively. Factory goods caused decline in world textile prices, making production in India increasingly uneconomic. Indian markets were flooded with cheap machine-made textiles. Indian weavers could not compete with these

patronage. The British rule thus transformed Indian

economy and made it a supplier of raw

materials and a market for British goods.

cheaper textiles. Britain first took over India'sDrain of Wealth export market and eventually much of its The British rule in India was suited to the interests

of the British economy and industries. Indian wealth and resources were exported to Britain, for which India got no adequate economic returns. This trend

domestic market as well.

In 1720, under the pressure from the British

manufacturers, the British government passed

laws prohibiting sale of Indian products in

England.

has been termed as Drain of Wealth from India. A large part of the wealth acquired by the British from India in form of the taxes and income were not After the British victory in the Battle of Plassey spent on India and welfare of Indian people, but were

in 1757, there was a change in the Company's remitted to Britain, their home country. commercial relations with India. The Company utilised its political power to destroy the Indian traditional handicraft industry and trade. It coerced the weavers of Bengal to sell their goods in his book Poverty and Un-British Rule in India.

Dadabhai Naoroji, a nationalist leader and

economist, put forth the Drain of Wealth Theory

He stated that internal factors were not responsibleat much lower prices, at times incurring losses. for poverty of India, but rather it was a result of the The British also forced Indian weavers to buy British rule in India that initiated an organised drain

raw materials from the Company officials only. of of its resources and wealth to Britain. The Drain of

Wealth Theory was further analysed and developed The British government was determined to

protect its growing machine industry in Britain, by R.C.Dutt in his book Economic History of India. whose products could still not compete with

HISTORY 83

administration of the country, they telt the acute

nced for clerks to maintain records and files. To

gct them from England did not seem a viable

proposition as these positions were lowly paid.

Thus, the British decided to introduce the English

system of education in India.

Prior to British intervention, education in India

was religious and restricted to the upper class of

the society. Elementary education was confined to

patshalas and maktabs. For higher education, there

were tols and madrasas.

CHARTER ACT OF 1813

The Charter Act of 1813 was the first step towards Dadabhai Naoroji

introduction of western education in India. It The drain of wealth from Bengal began in 1765 directed the Company to spend the sum of one

when the Company acquired the Diwani of Bengal, lakh rupees on education of Indians. However, this

gaining control over its revenue and resources. Raw

materials such as cotton, silk, jute, indigo, and tea amount was not available to the Company till 1823.

were exported for the growing industries of Britain.

The Company began to purchase Indian goods out

A conflict also emerged on the question of content

and medium of instruction. The Charter also did

not specify whether the education was to be given of Bengal's revenue and export them to Britain. to all or to a select few. These came to be known as 'investments' which

were sent to Britain. From 1765 to 1770, the

Company exported nearly 4 million pounds, ie., ORIENTALISTS VERSUS ANGLICISTS

Two groups emerged with distinct opinions on the

direction that education in India should take

about 33 percent of net revenue of Bengal.

In addition, large parts of the salaries and incomes

of Company officials as well as the gifts' and 'bribes'

of trading merchants were also sent to England. The Orientalists, who advocated the spread of Indian literature and learning, through the

Introduction of Modern Education

Policy

medium ot classical and vernacular languages like Sanskrit, Arabic and Persian

The Anglicists or the English Party, which

approved promotion of western learning through the medium of English. Lord Macaulay was an

important proponent of this group.

The British came to India as a trading group.

Eventually, when they took control of the

Did you know?

British officials or economists never attempted to MACAULAY'S MINUTE measure average income of Indian or the national

The controversy between the Orientalists and

the Anglicists was settled by Macaulay's Minute. incomc of the country.

84 HISTORY

Macaulay's Minute favoured teaching of western Lord 1Dalhousic. It outlined a comprchensive plan

sciences and literature through English medium. for spread of cducation in India.

Macaulay's system of education wvas supported by The main provisions of Wood's Despatch were:

Governor-General William Bentinck. An education department was to be set up in

every province.

Universities should be established in big cities

such as Bonmbay (Mumbai), Calcutta (Kolkata),

and Madras (Chennai).

At least one government school be opened in

cvery district.

The Indian natives should be given training in

their vernaculars also.

Provision was made for a systematic method of

education from primary level to the university

level.

The government should always support

Lord Macaulay education for women.

Provisionwas made for grants-in-aid for

private schools affiliated to the government. Macaulay's Minute formed the basis for the reforms

introduced in the English Education Act of 1835.

The government set up numerous English-medium

schools and colleges. In 1844, English was made the

official language. The government also announced

The Despatch asked the Company to take up the

responsibility of education of masses. As per the

direction given by the Despatch, Department of

Education was instituted in all provinces. Universities

vere set up in 1857 at Calcutta, Bombay and Madras. that Indians educated in British schools would be

given government jobs. PURPOSE OF WESTERN EDUCATION

ACTIVITY A primary reason for the introduction of

western education was to economise the Imagine you were a part of the Indian education

sy stem during Macaulay's time. Do you think

Macaulay's decision about implementing English education in India has benefitrted you? Or would

it have been better if a law was passed favouring

cost of administration. Western educated

Indians could take up subordinate positions in

administration at low cost.

enacular education? By being introduced to the English system of education, Indians would be able to relate

themselves more to the British ways of life and WOOD'S DESPATCH conduct.

In 1854, Charles Wood, President of the Finally, western

Company's Board of Control, prepared a despatch education was expected

to inculcate a sense of respect among the or official report to the Governor-General

Indian people for the British rule as it glorified

HISTORY 85

the British conquest of India and

administration. For the British, the use of western education was a way through which it could

further strengthen its poliical authority in India

their GLOBAL CONNECT

The University of Bologna, founded in

1088 in Italy, was the first university and

the oldest in the western world. By the

twelfth and thirteenth centuries, it had So, the East India Company created an education

sy'stem aimed at the acculturation of Indians

to European attitudes through the teaching of become the principal centre for studies in

civil and canon law and attracted students

English. from all over Europe. There were also certain weaknesses of this education

system in India:

There was a major gap in early education was

related to the education of girl for which no

The British neglected the education of the

masses, which later resulted in a wide gap

between the educated people, who were mostly

upper class, and masses. About 94 percent

of people were illiterate in 1911 and 92 The ettects of western education, while directly

fund was allocated.

percent in 1921. It was mostdy the aftluent class

which had monopoly over higher education.

favouring the British, did indirectly prove as

beneficial to the Indians.

Efects Favourable to Indians

Effects Favourable to the British

Western education created class of people who were English Western education roused the people of India and made them

educated and therefore capable of carrying out the Company's aware of the ill effects of a foreign rule.

adminisrative activities as civil servants

It also changed the tastes of some individuals to such an extent They were able to read the works of modem European thinkers

that they favoured everything British and looked upon Indian and were exposed to democratic values and principles

goods and Indian culture with disdain. Educated Indians became cognizant of nationalist movements

in different parts of the world and this created in them, the| desire to free India from the British and create a new nation |

that was strong and independent.

Timeline

1820: Ryotwari System in

Madras Presidency 1793: Permanent

Settlement of Bengal 1833: Mahalwari System in

Central Provinces

1750 1850 CE 1 CE BCE

1700 1800 1900

1813: Charter Act 1835: English 1854: Wood's Despatch

Education Act

86 HISTORY

CONCEPT MAP

British Policies and Their Impact

Land Revenue Systems Indian Crafts and Education Policy Permanent Settlement Industries Charter Act of 1813 set apart

one lakh rupees for education of Indians

Introduced by Lord Cornwallis in 1793

Revenue fixed permanently Ryotwari System Introduced by Thomas

Munro in 1820

Decline of traditional eraft and industries

Adverse British policies High tariff on Indian goods

entering Britain Free trade for British goods

entering India Loss of royal patronage

Two opinions on medium of education: Orientalists - Indian

learning through vernaculars

Anglicists-Western learning through English

Macaulay's Minute supported western sciences and literature through English medium.

Wood's Despatch outlined a

comprehensive plan for education in India.

Revenue directly collected from cultivators

Mahalwari System Introduced by Holt

Mackenzie in 1833

Entire village considered unit of assessment

Exercise

A. Fill in the blanks.

1. India in the eighteenth century had an . economy.

system of revenue collection. 2. Warren Hastings introduced the.

3. The Permanent Settlement of Bengal was instituted by .

4. The Ryotwari System was started in the.

5. The Drain of Wealth Theory was propounded by. presidency

B. Match the columns.

1. Permanent Settlement a. Entire village as unit of assessment for revenue

2. Ryotwari System b. Universities set up in Bombay, Madras and Calcutta

3. Mahalwari System c.English education 4. Wood's Despatch d. Fixed land revenue

5. Macaulay's Minute Revenue directly paid by cultivators C.

HISTORYN 87

C. Choose the correct answer.

1. The Treaty of_

Orissa. granted the East India Company the Diwani of Bengal, Bihar and

d. Bengal a. Allahabad b. Amritsar c. Madras

system created a class of zamindars loyal to the British.

b. Ryotwari

2. The

a. Permanent Settlement

c. Mahalwari d. Ijaradari

3. introduced Mahalwari system in 1833.

a. Thomas Munro b. Warren Hastings

C. Lord Cornwallis d. Holt Mackenzie

Was the most prominent person among the Anglicists.

a. Lord Bentinck b. Charles Wood c. Macaulay 4.

d. Lord Dalhousie

5. Wood's Despatch was sent in the year. d. 1843

a. 1854 b. 1850 C. 1870

D. Answer the following questions in brief.

1. What was the main feature of the ijaradri system?

2. Who wrote Poverty and Un-British Rule in India and what was its theme?

3. What was the significance of the Charter Act of 1813?

4. What were the tenets of Wood's despatch?

S.Give one reason why the Anglicists favoured western education for Indians.

E. Answer the following questions in detail.

1. Explain the main features of the Permanent Settlement system. How did it affect the Indians?

2. How was the Ryotwari System organised? How is it different from the Mahalwari system?

3. Describe the impact of British economic policies on traditional Indian trade and industries.

4. Give an account of the introduction of western education in India.

5. Elaborate the impact of western education on the Indian society.

F. Snap Shot!

Look at the picture and answer the following questions.

1. Identify the person.

2. What is his role in the education in India?

3. What was the impact of his policies on education in India?

88 HISTORY

Life Skills Respect for Culture

Organise a debate in your class on the impact of western education in India. Do you think western

education has changed your outlook and views on many issues? How do you think the balance between Indian culture and traditional values, and western education has and can be maintained?

ICT Integration India has been a major cotton-producing country since ancient times. In fact, India had an enviable trade in cotton textiles before the coming of the British. However, in present times, we find that cotton farmers lead a life of hardships. Search the Internet and identify the reasons for the difficult lives of

farmers in modern India. How can the government improve their conditions?

Project Find out about the debates surrounding the status of English as official language in post-Independence India. Make a presentation in your class.

HISTORY 89