Economic Effects of British Colonial Rule
- Revenue Systems
- The Permanent Settlement (1793) under Lord Cornwallis fixed land taxes in Bengal, favoring landlords (zamindars) and burdening peasants.
- Commercialization of Agriculture
- Indian farmers were forced to grow cash crops like indigo, opium, and cotton, reducing food production.
- Deindustrialization
- Indian textile industries declined due to competition with British factory goods.
- Drain of Wealth
- Profits from Indian land, trade, and taxes were sent to Britain, causing a “drain of wealth” from India.
- Infrastructure Development
- Construction of railways, roads, and telegraphs mainly served British trade and military needs, not Indian welfare.
Definition
Permanent Settlement
- Fixed land tax system that benefited landlords and impoverished peasants.
Definition
Zamindar
- Landowner responsible for collecting taxes under British rule.
The Permanent Settlement (1793)
Background and Purpose
- Introduced by Lord Cornwallis to simplify revenue collection in Bengal.
- Fixed land tax payments permanently, creating hereditary landlords (zamindars).
- Aimed to increase efficiency and secure steady British revenue.
- Ignored natural disasters or crop failures. Taxes remained constant.
- Encouraged production for British markets, not local consumption.
Consequences
- Many peasants lost land due to inability to pay high rents.
- Landlords became absentee owners, neglecting rural welfare.
- Agricultural productivity declined; famines became frequent.
- Strengthened British control over rural India.
- Created long-term economic inequality between landowners and farmers.
Social and Cultural Impact of British Rule
- Western Education
- Macaulay’s Minute (1835) promoted English education and Western curricula, creating a class of Indian elites loyal to Britain.
- Cultural Reforms
- Governor-General Lord William Bentinck (1828–1835) banned sati (widow burning) and thuggee (ritual murder).
- Missionary Activity
- Christian missions spread education but also threatened traditional beliefs.
- Social Change
