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ECONOMIC IMPACT OF THE COMPANY RULE - Coggle Diagram
ECONOMIC IMPACT OF THE COMPANY RULE
THE BASIC QUESTIONS
Why there were simultaneous new policies made in india?
why India was ruined specifically to develop England?
India was a pawn for the development of industrial european society AS A MINE FOR RAW MATERIAL AND RESOURCES BECAUSE IT WAS POLITICALLY A WEAK COUNTRY.
1. COLLAPSE IN THE TRADITIONAL ECONOMY
economy of bengal was sustained by ;
-agriculture, craft industries.
EVENTUALLY, Britishers gained control over India post battle of Plassey.(1757 A.D) and battle of buxar(1764).
Robert clive exploited India by zamindari system and dual policy of government.
MADRAS state's economic advisor: John Sullivian, stated their policies work like a sponge.
arrival of britishers;1600 A.D E.A.C
FRANCOISE BERNIER (1700 A.D) TWICE
Acording to him bengal was a wealthy resourseful state that had many doors but no exit to it.
another trigger- the prices of bengal's goods were cheap plus it's jute and an cotton goods were highly demanded
( quality goods bought at low prices= currency deppriciation) value of indian currency dropped.
they traded via searoute and roads to BASRA, MOCCHA AND JEDHYA.
2.REVENUE POLICIES
The three major policies that highly exploited India were
1.REVENUE FARMING was introduced by Warren Hastings: exploited the farmrers by zamindari System.
4. MAHALWARI SYSTEM
It was followed by Punjab,north and northwest India
settlements or treaties were made with the villages or taluqdars.
-Each fixed unit was called "mahal" with a fixed rate of tax collected by the zamindars that eventually ruined these "mahals".
therefore these systems were designed to exploit INDIA like the treaty of Subsidiary alliance.
50% income had been collected by these policies during 1858 to 1859.
2
.PERMANENT SETTLEMENT SYSTEM(1797)
Introduced by Cornwalis in bengal,bihar and Orrisa.
promoted Zamindars to the "owners of the land''
deposited 10th part of11th of their salary
were punished by auctioning their land if not paid or collected revenue for the state despite natural calamities for over 15 years
-definately triggered the farmers to revolt
3.RYOTWARI SYSTEM
Introduced by reformer Thomas Munro and post introduced in Bombay presidency by Ephinstone.
Pre-introduced in bombay, assam and Madras
Provide ownership rights to the farmars and girasdars in exchange to annum taxes at any costs.
-Girasdars were minor Zamindars that were equal to farmers.
but when the farmers are unable to paqy the tax, the girasdars increase their dominance back to the ''rich Zamindars''
STAGNATION OF INDIAN AGRICULTURE
due to these systems farmers and cottage industries were exploited and unemployed.
-lack of skills and infrastructure hindered their organic solidarity.
According to 'reward commission' the lands given in charity or gifts were seized.
no lands= no agriculture= no income = poverty=to be forcefully manipulated by britishers to grow cash crops annually.
agriculture was the dependent source of international income which was ruined.
-in 1875 55% TO 65% National income was gained from agriculture sector.
-in 1901 75% goods were exported from agriculture sector consisting of tea,sugar and even cotton textiles.
= SCARCITY OF FOOD
the next cotton mill was made in Mumbai 1854
Next in Ahmedabad in 1861 by Chotalal Ranchodlal.
-textile mills were even started in Nagpur,Solarpur,Madras
INDUSTRIAL DEVELOPMENT
-The main source for industrial trade were cotton , jute,indigo and coffee in 19th cen.
-these were prime sources of income.
-due to british inteference these small scale industries were ruined.
''Protected Industrial policy" and " Free Trade Policy" Were implemented, plus import duties were remove over indian goods
Jamshedji Tata introduced the tata factory in 1911 in Vadodara and even the 'Institute of Science'.
Alembic chemicals and other industries like silk and jute,cotton textile industries started.
Mahatma Gandhi encouraged industrial development with labor intensive methods.
production and invention of airplanes were initially denied,during World wars, ships and chemical making industries flourished.
Finally in 1818 India established a cotton mill in Karnataka.
INDIA's Manchester of cotton textiles were 108. influenced by swadeshi movement in (1905 A.D).
FAMINES AND POVERTY
Total exploitation of britishers had led to poverty and destruction.
famines occured during the times of lord Canning in Aagra,Rajputana,and Punjab in 1861 with bystander effect.
During sir lLawrence's period in 1866, famines occured drastically ending up more than 20 lakh lives, in Orrisa
in 1867 to 1869, Rajputana and Bundhelkhand were affected.
in 1876-78 famines in bihar and Bengal, Northbrook imported rice from Burma and helped them.
it was the worst famine ever faced by Madras,Mysore and Punjab during rule of Viceroy Lyttonn. yet, relief measures were taken by him like returning the 2.5 crore in invest to cultivate the lands.
in 1896-1897, 40 lakh people were affected,7.5 lakh people died during the reign of Viceroy Elgin II.
Even Viceroy Curzon were on bystander effect in the famines of 1899-1900.
post these measures, a committee formed under chairmanship of Sir Richard Stratchey provide employment to the people andi nvested 1.5 crore in construction of railways. he was also known as ''maker of famine policy''
according to William Digby,2,85,000 people died in the famines of 1854 to 1901. while 3 million people died in Bengal