Modern History Playlist
19 chapters • 0 completed
1
Advent of Europeans in India
9 topics
2
Decline of the Mughal Empire
7 topics
3
Emergence of Regional States
11 topics
4
Expansion and Consolidation of British Power
19 topics
5
British Government & Economic Policies (1757–1857)
4 topics
6
Social Reform Movements
20 topics
7
People’s Resistance before 1857
3 topics
8
The revolt of 1857
6 topics
9
Growth of Nationalism and Moderate Phase of Congress
6 topics
10
British Administration in India
7 topics
11
Era of Militant Nationalism (1905-1909)
5 topics
12
First Phase of Revolutionary Activities(1907-1917)
8 topics
13
India’s Response to First World War and Home Rule Movement
4 topics
14
Emergence of Gandhi
6 topics
15
Non-Cooperation Movement and Khilafat Movement
7 topics
16
Emergence of Swarajists, Socialist Ideas, Revolutionary Activities
5 topics
17
Struggle For Swaraj: 1928-1935
13 topics
18
Period from 1935-42
9 topics
19
Period from 1942-47
22 topics
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Chapter 5: British Government & Economic Policies (1757–1857)
Chapter Test4 topics•Estimated reading: 12 minutes
Structure of Government under the Company
Key Point
The East India Company’s rule evolved from a trading corporation’s administration to a structured colonial government, regulated increasingly by the British Parliament.
The East India Company’s rule evolved from a trading corporation’s administration to a structured colonial government, regulated increasingly by the British Parliament.
Detailed Notes (10 points)
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1757–1765: Company gained political control after Plassey (1757) and Buxar (1764). Treaty of Allahabad (1765) granted Diwani rights in Bengal, Bihar, Orissa.
Dual Government (1765–72): Company collected revenue, Nawab retained administration. Led to chaos and Bengal famine (1770). Abolished by Warren Hastings.
1773: Regulating Act → Governor of Bengal became Governor-General of Bengal; first step of Parliamentary control.
1781: Amending Act → clarified Supreme Court powers to reduce conflict with Governor-General’s Council.
1784: Pitt’s India Act → Created Board of Control in Britain; dual system of control (Company + Parliament).
1813: Charter Act → Ended Company’s monopoly in trade (except tea and China trade); allowed Christian missionaries.
1833: Charter Act → Governor-General of India created (Lord William Bentinck first); Company lost all trade rights; India became purely administrative empire.
1853: Charter Act → Introduced open competition for civil services (ICS); set foundation for modern bureaucracy.
Administrative expansion: Creation of Presidencies, judicial institutions (Supreme Court, later High Courts), and an expanding civil service to collect revenue and maintain law and order.
Role of Residents and Political Agents: British Residents at princely courts exercised influence, negotiated treaties, monitored succession — key to indirect rule.
Major Acts (1773–1853)
| Year | Act | Key Features |
|---|---|---|
| 1773 | Regulating Act | Governor of Bengal → Governor-General of Bengal (Warren Hastings first); Supreme Court at Calcutta (1774); first step of Parliamentary control; Company officials prohibited from private trade; aimed at curbing corruption. |
| 1781 | Amending Act | Also called Act of Settlement; clarified powers of Supreme Court; restricted jurisdiction over Governor-General and Council; reduced conflicts between Court and Council. |
| 1784 | Pitt’s India Act | Created Board of Control in Britain; introduced 'dual system of control' (Company + Parliament); Governor-General’s council reduced to 3 members; distinguished political and commercial functions. |
| 1813 | Charter Act | Ended Company monopoly in trade (except tea and China trade); permitted Christian missionaries; earmarked ₹1 lakh annually for promotion of education; asserted Crown sovereignty over Company’s possessions. |
| 1833 | Charter Act | Created Governor-General of India (Lord William Bentinck first); complete end of Company’s trade monopoly (even tea/China); India became purely administrative empire; first Law Commission under Macaulay; slavery abolished later in 1833. |
| 1853 | Charter Act | Introduced open competition for Indian Civil Services (ICS); separated legislative and executive functions of Governor-General’s council; no fixed period for Company’s charter (could be ended anytime); opened door for Indians in civil services (though exams held only in London). |
Fun Facts
Supreme Court judges in Calcutta (1774) clashed with Warren Hastings’ Council, causing a constitutional crisis.
The 1813 Act allowed Christian missionaries to legally operate in India for the first time.
Mains Key Points
Parliament gradually tightened control over Company → shift from commercial to political administration.
Acts laid the groundwork for centralized colonial governance.
Prelims Strategy Tips
Dual Government → Bengal (1765–72), abolished by Warren Hastings.
First Governor-General of Bengal = Warren Hastings (1773).
First Governor-General of India = Lord William Bentinck (1833).
Charter Act 1853 → ICS open competition.
Land Revenue Policies
Key Point
British land settlements focused on maximizing revenue, often at the expense of peasants. Different systems were introduced across regions.
British land settlements focused on maximizing revenue, often at the expense of peasants. Different systems were introduced across regions.
Detailed Notes (6 points)
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Permanent Settlement (1793, Cornwallis): Zamindars recognized as hereditary landlords; revenue fixed permanently. Led to absentee landlordism, peasant oppression.
Ryotwari Settlement (Thomas Munro, 1820s): Direct settlement with cultivators (ryots); prevalent in Madras, Bombay. Revenue revised periodically (not fixed).
Mahalwari Settlement (R.M. Bird, 1833): Settlement with village communities (mahals). Each village jointly responsible. Prevalent in NW Provinces & Punjab.
Taluqdari System (Awadh): After annexation, taluqdars (landlords) controlled villages, leading to oppression.
Indigo System (Bengal): European planters forced peasants to grow indigo; sparked Indigo Revolt (1859–60).
Consequences: Rise of absentee landlords, indebtedness among peasants, decline in traditional village institutions, periodic agrarian unrest and famines.
Major Land Revenue Systems
| System | Region | Introduced by | Features | Impact |
|---|---|---|---|---|
| Permanent Settlement | Bengal, Bihar, Orissa | Cornwallis (1793) | Zamindars as landlords; fixed revenue forever | Peasant oppression; famine; zamindar defaults |
| Ryotwari | Madras, Bombay | Thomas Munro, Elphinstone | Direct settlement with cultivators; periodic revision | High burden on peasants; indebtedness |
| Mahalwari | NW Provinces, Punjab | R.M. Bird (1833) | Village (mahal) collectively responsible | Strengthened village elite; peasant burden remained |
| Taluqdari | Awadh | Dalhousie’s policy | Taluqdars acted as intermediaries | Increased exploitation; resentment in 1857 |
| Indigo System | Bengal | Planters | Forced indigo cultivation | Led to Indigo Revolt (1859–60) |
Fun Facts
Under Permanent Settlement, many zamindars lost estates due to inability to pay fixed high revenue.
The Indigo Revolt inspired Dinabandhu Mitra’s play *Nil Darpan* (The Indigo Mirror).
Mains Key Points
Revenue policies prioritized Company profits over agrarian welfare.
Settlements created exploitative intermediaries and rural unrest.
Exploitation contributed to 1857 revolt.
Prelims Strategy Tips
Permanent Settlement = Cornwallis, 1793 (Bengal).
Ryotwari = Thomas Munro (Madras/Bombay).
Mahalwari = R.M. Bird, 1833 (NW Provinces, Punjab).
Indigo Revolt = 1859–60 in Bengal.
Economic Policies
Key Point
British economic policies de-industrialized India and integrated it into the global capitalist system as a raw material supplier and market for British goods.
British economic policies de-industrialized India and integrated it into the global capitalist system as a raw material supplier and market for British goods.
Detailed Notes (6 points)
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De-industrialisation: Indian handicrafts collapsed due to influx of British machine-made goods and duties that favoured imports.
India exported raw materials (cotton, indigo, silk, opium) and imported manufactured goods, reversing pre-colonial trade patterns.
Drain of Wealth: Dadabhai Naoroji and later nationalists argued that surplus was transferred to Britain via trade surplus, salaries, pensions, and 'home charges'.
Opium Trade: Company encouraged opium cultivation in Bihar and Bengal, exported to China; profits financed Company operations and contributed to Opium Wars.
Infrastructure: Railways (from 1853), telegraph, roads, ports developed — primarily to move troops, raw materials and integrate markets favourable to Britain.
Fiscal policies: High land revenue demands and tariffs structured to extract surplus; currency and banking changes favoured British merchants.
Economic Changes (1757–1857)
| Policy/Feature | Impact |
|---|---|
| Import of British textiles | Collapse of Indian handicrafts |
| Export of raw materials | Shift to cash crops (cotton, indigo); food insecurity |
| Drain of Wealth | Systematic transfer of Indian wealth abroad |
| Opium cultivation | Profits for British; misery for peasants; war with China |
| Railways (1853) | Facilitated exploitation; not industrialisation |
Fun Facts
Dadabhai Naoroji called British rule 'Un-British Rule in India'.
Railway contracts guaranteed profits for British investors.
Mains Key Points
Economic policies transformed India into a colonial economy.
Policies triggered rural poverty and discontent, contributing to 1857 revolt.
Prelims Strategy Tips
First railway line: Bombay to Thane (1853).
Drain of Wealth theory → Dadabhai Naoroji.
Opium trade key to British profits in China.
Impact on Indian Society
Key Point
British policies disrupted traditional structures, created new classes, and laid the basis of modern Indian economy and politics.
British policies disrupted traditional structures, created new classes, and laid the basis of modern Indian economy and politics.
Detailed Notes (6 points)
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Zamindars and moneylenders gained power; peasants impoverished and became indebted.
Urban centres declined, while port cities (Calcutta, Bombay, Madras) and administrative towns expanded.
New educated middle class (English-educated Indians) emerged from missionary schools and colleges — later nucleus of nationalist leadership.
Social reforms and missionary activity led to debates on sati, widow remarriage and caste practices; legal reforms followed.
Economic distress, land alienation and cultural shocks created social unrest, leading to localized revolts and contributing to the Revolt of 1857.
Long-term institutional changes: modern legal codes, railways, postal and telegraph systems, and western-style education became permanent features.
Fun Facts
Dadabhai Naoroji’s book *Poverty and Un-British Rule in India* (1901) made Drain Theory popular.
Mains Key Points
Colonial exploitation created social discontent and contributed to 1857 revolt.
Also created new classes (educated Indians, zamindars) that shaped modern politics.
Prelims Strategy Tips
Permanent Settlement created absentee landlordism.
Port cities grew at the cost of inland towns.
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