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