British Expansionary Policies

Trading Rights in Bengal

Context and Background

• Pre-British Trade Scenario: Bengal was a major economic hub under Mughal rule, known for its rich resources and thriving trade.
• East India Company’s Interest: The British East India Company sought to establish a foothold in Bengal to exploit its wealth and control trade routes.
• Key Event: The Battle of Plassey (1757) marked the beginning of British dominance in Bengal.

Key Policies and Measures

1. Doctrine of Lapse

• Definition: A policy introduced by Lord Dalhousie in 1848, which allowed the British to annex Indian states if there was no natural heir.
• Application in Bengal: Not directly applicable to Bengal, but used in other regions like Satara, Jhansi, and Nagpur.
• Impact: Led to the annexation of many princely states, strengthening British control over the subcontinent.

2. Permanent Settlement (1793)

• Introduced by: Lord Cornwallis
• Purpose: To fix land revenue and ensure a stable income for the British East India Company.
• Key Features:
  • Land was transferred to zamindars as proprietors.
  • Zamindars were to collect revenue from peasants and pay it to the Company.
  • Revenue was fixed for perpetuity.
• Impact:
  • Zamindars became landlords, leading to exploitation of peasants.
  • Economic stagnation due to lack of investment in agriculture.
  • Increased revenue for the Company.

3. Revenue Policies

• Land Revenue System: The British implemented various systems to collect revenue from Bengal.
• Main Systems:
  • Permanent Settlement (1793): As described above, introduced by Lord Cornwallis in Bengal, Bihar, and Orissa.
  • Ryotwari Settlement: Implemented in Madras and Bombay, where revenue was collected directly from peasants (ryots).
  • Mahalwari System: Introduced in North-Western Provinces and Punjab, where revenue was collected from village communities (mahals).
  • Revenue Farming: A system where the Company leased land revenue collection to private contractors.
• Effect on Economy:
  • Peasants faced high taxes and debt.
  • Agricultural productivity declined.
  • Led to famines and social unrest.

4. Control Over Trade

• Monopoly on Trade: The British East India Company was granted a monopoly on trade with Bengal.
• Key Ports: The Company controlled key ports like Calcutta, Hooghly, and later Bombay and Madras.
• Impact:
  • Suppressed local trade and handicraft industries.
  • Led to economic dependency on British goods.
  • Caused decline of indigenous industries and wealth.

Important Dates and Terms

Key Facts for Competitive Exams (SSC, RRB)

• The Battle of Plassey (1757) marked the start of British dominance in Bengal.
• The Permanent Settlement (1793) was introduced by Lord Cornwallis to fix land revenue.
• The Doctrine of Lapse was used to annex states like Jhansi and Nagpur.
• The zamindars became landlords under British rule, leading to exploitation of peasants.
• The British East India Company controlled trade in Bengal, leading to economic decline of local industries.
• The Murray System (1822) was a more flexible revenue system compared to the Permanent Settlement.

Differences Between Revenue Systems

Summary (Quick Revision)

• Trading Rights in Bengal were central to British expansion.
• The East India Company established control through military victories and economic policies.
• Land revenue systems like the Permanent Settlement and Murray System shaped the economy.
• Zamindars became key intermediaries between the Company and peasants.
• British policies led to economic decline and social unrest in Bengal.