British Rule in India

Economic Policy

Stages of Colonialism
Background
Stages of Colonialism

Given by R. Palme Dutt Marxist Historian

Colonialism 3 Stages/Phases

Phase I Mercantile Phase 1757-1813

Phase II Industrial Phase 1813-1860
Phase III Financial Phase 1860-1947
Phase I Mercantile Phase (1757-1813)
1st Phase Commencement with the establishment of British rule in 1757

Objective Monopoly in trade & Direct Plunder

Securing trade & commercial interests by focussing

on:
a. Eliminating rival European power’s present in
India

b. Eliminating native rulers who create obstacles

Strengthening trade through charters & rights issued by the British

government
Phase I Mercantile Phase (1757-1813)
1st Phase Commencement with the establishment of British rule in 1757
Strengthening trade through charters & rights issued by the British
government

Started creating base for direct plunder by way of establishing political

control over Indian territories

Made no major change in existing system in India

Phase II Industrial Phase (1813-1860)
Change in approach becomes visible

Industrial Revolution
Demand of Raw Material &

Market for Finished goods

Phase II Industrial Phase (1813-1860)
Change in approach becomes visible

Industrial Revolution

Birth of Industrial
Capitalism
Phase II Industrial Phase (1813-1860)
Change in approach becomes visible

Demand of Raw Material &

Industrial Revolution
Market for Finished goods

Industrial Capitalist Showed Critical

attitude towards
EIC monopoly
Created pressure
on government
Phase II Industrial Phase (1813-1860)
Enactment of Charter Act 1813

First step towards free trade

Effort was made towards establishing India as a great source of raw

material & huge market for manufactured goods
Phase II Industrial Phase (1813-1860)

Indian Economy getting integrated with

Free trade
British Capitalist + World Economy

New Colonial Setting up of New Politico- Administrative

Approach Approach
Objective: linked with fulfilment of free
trade
Phase II Industrial Phase (1813-1860)
New Colonial Setting up of New Politico- Administrative
Approach Approach
Objective: linked with fulfilment of free
trade

Changes in Judicial System,

Political System

Need to develop Indian Social

structure in accordance to the
capitalistic & commercial structure
Phase II Industrial Phase (1813-1860)
Expansion of Trade &
New Education Policy
Commerce

Development of Transport & Communication

Railways, Telegraphs, Posts etc.
Phase III Financial Phase (1860-1947)
Post 1860 Promoting of Foreign Capital
Come...Make
Increasing Investment Base in: in India ;)

Railway
Providing loan/debt to government
Tea Plantation, Jute Mill
Coal Mining
Shipping

Protecting the foreign capital By strengthening British rule in India

Phase III Financial Phase (1860-1947)
Protecting the foreign capital By strengthening British rule in India

Use of new techniques, acts & policies

More Money Strong Administration Expansion of rule

Curbing process of Modernisation & stop spreading of modern &

progressive ideas
Governor Generals-Bengal & India
Background
The English East India Company was established on 31 December 1600
as per the Royal Charter issued by the Queen of England, Elizabeth I

Company had sent Captain Hawkins to the court of the Mughal Emperor,
Jahangir in 1608

1613,Sir Thomas Roe obtained more trading rights and privileges for the
East India Company

Battle of Plassey in 1757 Company became a

Battle of Buxar in 1764 political power

Robert Clive was the first Governor of Fort William under the Company’s
rule
English
1600, Queen Elizabeth Charter to East India Company
Rights to Carry on Trade with all Countries on the eastern side of Cape
of Good Hope
Background
Governors-General Of Bengal (Regulating Act of 1773)

Warren Hastings 1774-1785

Earl ( Marquess ) Cornwallis 1786-1793
Sir John Shore 1793-98
Richard Wellesley, Earl of Mornington 1798-1805
Marquess Cornwallis (Second time Govenor General) 1805
Sir George Barlow 1805-07
Lord Minto 1807-13
Marquess of Hastings (Earl of Moira) 1813-1823
Lord Amherst 1823-28
Background
Governors-General of India (charter act of 1833)
Lord William Bentinck 1828-1833
Lord Auckland 1836-42
Lord Hardinge 1844-48
Lord Dalhousie 1848-1856

Lord Canning 1856-1858

Warren Hastings 1774-1785
Warren Hastings assumed the administration of Bengal
in 1772, he found it in utter chaos

financial position of the Company became worse

difficulties were intensified by famine

What was his role?

Warren Hastings realized the immediate

need for introducing reforms.

Q. Reforms by Warren Hastings?

Warren Hastings Reforms
1.Abolition of the Dual System
2.Revenue Reforms

3.Reorganisation of the Judicial System

4.Trade Regulations and other Reforms

5.The Regulating Act of 1773

6.Expansionist Policy of Warren Hastings

7.Pitt’s India Act, 1784
8.The Impeachment of Warren Hastings
Warren Hastings Reforms
1.Abolition of Dual System
Dual System introduced by Robert Clive was abolished
To improve the finances of the Company, Warren Hastings reduced
the Nawab’s allowance of 32 lakhs of rupees to half that amount

Nawab

Deputy Nawabs
Warren Hastings Reforms
2.Revenue Reforms
A Board of Revenue was established at Calcutta to supervise the
collection of revenue
Q. What work did board of revenue did?
Board of Revenue farmed out the lands by auction for a period of five
years instead of one year in order to find out their real value
Zamindars were given priority in the auction

Calcutta thus became the capital of Bengal in 1772

English Collectors were appointed in each district
Accountant General was appointed
Warren Hastings Reforms
3.Reorganisation of the Judicial System

Judicial system  store-house of abuses

Zamindars
Nawab

misused his powers

Judgments were careless

who acted as judges at lower levels within

their own areas were highly corrupt and
prejudiced
Warren Hastings Reforms
3.Reorganisation of the Judicial System Lagta hai
Mujhe hi Kuch
Karna Padega

Judicial system  store-house of abuses

Therefore, warren Hastings reorganised the judiciary

Each district was provided with a civil court under the Collector and a
criminal court
Warren Hastings Reforms
3.Reorganisation of the Judicial System
To hear appeals from the district courts two appellate courts, one for
civil cases and another for criminal cases, were established at Calcutta

Highest civil court of appeal was called Sadar Diwani Adalat

presided over by the Governor and two judges recruited from
among the members of his council

Highest appellate criminal court was known as Sadar Nizamat Adalat

function under an Indian judge appointed by the Governor-in-Council
Experts in Hindu and Muslim laws were provided to assist the judges
Warren Hastings Reforms
Governor General

Collector

Sadar Diwani Adalat Sadar Nizamat Adalat

Village Headmen

Mofussil Diwani Adalat Mofussil Nizamat Adalat

Warren Hastings Reforms
4.Trade Regulations and other Reforms

Abolished the system of dastaks, or free passes and regulated the

internal trade

Reduced the number of custom houses and enforced a uniform tariff of

2.5 percent for Indian and non-Indian goods
Introduced a system of pre-paid postage system

5.The Regulating Act of 1773

Warren Hastings Reforms
6.Expansionist Policy of Warren Hastings

The Rohilla war (1774)

First Anglo-Maratha war (1775-82)

The second Anglo-Mysore war (1780-84)

7.Pitt’s India act, 1784

Warren Hatings Reforms
8.The Impeachment of Warren Hastings
Pitt’s India Act of 1784 was a rude shock and bitter disappointment for
Warren Hastings
Prime Minister’s speech censuring the policy of the Government of
Bengal
Resigned and left India in June 1785
In 1787, Warren Hastings was impeached in the Parliament by
Edmund Burke and the Whigs for his administrative excess
Lord Cornwallis 1786-1793
Belonged to an influential and aristocratic
family which had wider political
connections

Also a close friend of prime minister

Pitt and of Dundas (BoC member)

Surrendered at York town in 1781 before the American troops, his

reputation was not spoiled
After his return from America he was offered the Governor General ship
in India
New tradition of choosing a person from an aristocratic family for the
post of governor-general was initiated
Lord Cornwallis Reforms
1.Tipu Sultan and the Third Mysore War (1790-92)
2.Administrative Reforms
3. Revenue reforms or Permanent Settlement
4. Judicial Reforms

5. Police Reforms

6. Other Reforms
7. Evaluation of Cornwallis
Lord Cornwallis Reforms
1.Tipu Sultan and the Third Mysore War (1790-92)
Treaty of Srirangapattinam 1792
Tipu had been defeated but not destroyed

2.Administrative Reforms
Greatest work purification of the civil service by the employment of
capable and honest public servants
Found that the servants of the company were underpaid
They received very high commissions on revenues
They conducted forbidden and profitable private trade in the names of
relatives and friends
Lord Cornwallis Reforms
2.Administrative Reforms
He persuaded the Directors of the Company to pay handsome salaries
to the Company servants
Cornwallis inaugurated the policy of making appointments mainly on
the basis of merit
laying the foundation of the Indian Civil Service

Major reform separation of the three branches of service, namely

commercial, judicial and revenue
Collectors, the king-pins of the administrative system were deprived of
Their judicial powers
Now Collectors only revenue collection
Lord Cornwallis Reforms
3. Revenue reforms or Permanent Settlement

4. Judicial Reforms
Secured the services of Sir William Jones, who was a judge and a great
scholar

Civil and Criminal courts were completely reorganized

Four Provincial courts of appeal at Calcutta, Dacca, Murshidabad and

Patna, each under three European judges assisted by Indian advisers
Lord Cornwallis Reforms
4. Judicial Reforms
Every district was provided with a court
Indian judges or Munsiffs were appointed to all the courts at
the bottom of the judicial system

Hindu and Muslim laws were followed according to the religion of the
litigants

Q. What if the dispute is between a Hindu & Muslim litigant?

In suits between Hindus and Muslims, the judge was the deciding
authority
Lord Cornwallis Reforms
4. Judicial Reforms

With the help of his colleague, George Barlow, Cornwallis prepared a

comprehensive codeCornwallis Code

covering the whole field of administration, judicial,

police, commercial and fiscal areas

It was based upon the principle of Montesquieu,

“the Separation of Powers”, which was popular in
the West in 18th century

Cornwallis made all officials answerable to the

courts
Lord Cornwallis Reforms
5. Police Reforms
The District Judge controlled the police
Each district was divided into thanas or police circles each of which was
about 20 square miles
It was placed under an Indian officer called the daroga who was ably
assisted by many constables
Hum hain
Daroga
yahan ke
Magniram
the daroga enjoyed almost unlimited Robinhood
naam hai
power of extortion and became the Pandey
scourge of the country hamara
Lord Cornwallis Reforms
5. Police Reforms
The District Judge controlled
the police

Each district was divided into

thanas o police circles each of
which was about 20 square miles

It was placed under an Indian

officer called the daroga who was
ably assisted by many constables
Lord Cornwallis Reforms
6. Other Reforms
Reformed the board of trade which managed the commercial
investments of the company
Fair treatment was given to weavers and Indian workers

7.Evaluation of Cornwallis
He perceived the danger of Tipu’s growing power and curtailed it by
boldly discarding the policy of non-intervention
As an administrator, he consolidated the Company’s position in India
and started the tradition of efficient and pure administration
Question UPSC Pre 2011
The tendency for increased litigation was visible after the introduction
of the land settlement system of Lord Cornwallis in 1793. The reason for
this is normally traced to which of the following provisions?
a. Making zamindar’s Position stronger vis-a-vis the ryot
b. Making East India Co. an overlord of Zamidars
c. Making Judicial settlement more efficient
d. None of the a, b and c above

Answer: B
Question UPSC Pre 2009
By a regulation in 1793, the District Collector was deprived of his judicial powers
and made the collecting agent only. What was the reason behind such regulation?

a. Lord Cornwallis felt that the district collector’s efficiency of revenue collection
would enormously increase without the burden of other work

b. Lord Cornwallis felt that Judicial power should compulsorily be in the hands of
Europeans, while Indians, can be given the job of revenue collection in the districts

c. Lord Cornwallis was alarmed at the extent of power concentrated in the District
Collector and felt that such absolute power was undesirable in one person

d. The judicial work demanded a deep knowledge of India and a good training in
law and Lord Cornwallis felt that District collector should be only a revenue
collector

Answer: C
In between
Sir John Shore (1793-98) succeeded Cornwallis as Governor General

His administration was uneventful

Marquess of Wellesley 1798-1805
Great imperialist and called himself ‘a Bengal
tiger’.

Came to India with a determination to launch

a forward policy in order to make

‘the British Empire in India’ into ‘the

British Empire of India’.

The system that he adopted to achieve his object is known as the

‘Subsidiary Alliance’
Marquess of Wellesley
Political Condition of India at the time of Wellesley’s Arrival
North-western India, the danger of Zaman Shah’s aggression posed a
serious threat to the British power in India

North and central India, the Marathas remained a formidable political

power

Nizam of Hyderabad employed the Frenchmen

Political unrest in the Mysore region continued and Tipu

Sultan had remained the uncompromising enemy of the British

Policy of neutrality adopted by Sir John Shore, the successor of

Cornwallis, created a kind of political unrest in India
Marquess of Wellesley
Political Condition of India at the time of Wellesley’s Arrival
Napoleon’s move for an Eastern invasion created a fear among
English statesmen

It was in this light that Wellesley moulded his policy

he reversed the non intervention policy of his predecessor and

formulated his master plan namely the ‘Subsidiary Alliance’.
Marquess of Wellesley Only Wars

1. The Subsidiary Alliance System

2.The Fourth Anglo-Mysore War (1799)

3.The Second Maratha War (1803-1805)

Marquess of Wellesley
Evaluation
One of the greatest empire-builders that England had ever produced
Wellesley converted “the British Empire in India to the British
Empire of India.”
establishment of British paramountcy in India was his supreme task
Located the weak spots of the Indian powers and applied his political
technique (namely subsidiary alliance).

“He turned the East India Company from a trading corporation into an
imperial power”.
Inbetween
Marquess Cornwallis (Second time Govenor General) 1805
Died within 6 months of assuming charge. So new GG

Sir George Barlow 1805-07

Vellore Mutiny of 1806 took place during his administration

Lord Minto 1807-13

Concluded the Treaty of Amritsar with Ranjit
Singh of Punjab in 1809
The Charter Act of 1813 was passed during this
period.
Lord Hastings (1813-1823)

Adopted a vigorous forward policy and

waged wars extensively

Expanded the British power in India

Hastings determined to restore order by suppressing the Pindaris

and to eliminate threats to the British power by waging wars with the
Marathas and the Gurkhas
Lord Hastings (1813-1823)
1. War against the Gurkhas (1814-16)

2. Suppression of the Pindaris

3. Third Maratha War (1817-1819)

4.Reforms of Hastings

5. Evaluation
Lord Hastings (1813-1823)
1. War against the Gurkhas (1814-16)
March 1816, the Treaty of Sagauli was concluded
Gurkhas gave up their claim over the Tarai region and ceded the
areas of Kumaon and Garhwal to the British

2. Suppression of the Pindaris

Origin of pindaris is lost in obscurity
First reference about them is during the mughal
invasion of maharashtra
Used to serve the maratha army without any
payment but instead were allowed to plunder
Lord Hastings (1813-1823)
3. Third Maratha War (1817-1819)
The Maratha dream of establishing themselves as the paramount power
in India was completely destroyed
The last hurdle in the way of British paramountcy was removed

4. Reforms
Approved the Ryotwari system of land revenue introduced in the
Madras Presidency by Sir Thomas Munroe
Police system of Bengal was extended to other regions

Separation of judicial and revenue departments was not rigidly

followed. Instead, the district collector acted as magistrate.
Lord Hastings (1813-1823)
4. Reforms

Encouraged the foundation of vernacular schools by missionaries and

others
1817, the Hindu College was established at Calcutta by the public for the
teaching of English and western science He was the patron

Encouraged the freedom of the press and abolished the censorship

introduced in 1799
Lord Hastings (1813-1823)
5. Evaluation
an able soldier and a brilliant administrator
liberal views on education and Press are commendable
Suppressed the Pindaris, defeated the Marathas and curbed the power
of the Gurkhas

He completed and consolidated the work of Wellesley

In between
Lord Amherst (1823-28)
fought the First Anglo-Burmese War (1824-26)
Signed treaty of Yandaboo
Lord William Bentinck (1828-1835)
At the young age of twenty two he became a
Member of Parliament

Was appointed the Governor of Madras in

1803

The Vellore Mutiny of 1806 had resulted

in Bentinck’s recall from madras

As Governor-General, Bentinck had initiated an era of progress and

reforms
Lord William Bentinck (1828-1835)
1. Policy Towards Indian States

2. Charter Act of 1833

3. Financial Reforms

4. Administrative Reforms

5.Social Reforms

6.Evaluation of William Bentinck

Lord William Bentinck (1828-1835)
1. Policy Towards Indian States
adopted a policy of non-intervention and non-aggression with Indian
states
1.1Mysore
British authorities took over the administration of Mysore State and
placed it under the control of a commissioner. The Raja was given a
pension.
1.2 Cachar and Jaintia
1.3 Coorg

1.4 Relations with Ranjit Singh

Indus Navigation Treaty was concluded
Lord William Bentinck (1828-1835)
2. Charter Act of 1833
liberal and utilitarian philosophy of Bentham was made popular by the
provisions of this Act

3. Financial Reforms
In 1828, the financial position of the Company was poor
Bentinck reduced the salaries and allowances of all officers and
additional staff were removed
In the military department, he abolished the system of double bhatta.
(Bhatta was an allowance to troops on active service.)

At the time of his departure, he left the treasury with a surplus of rs.1.5
millions
Lord William Bentinck (1828-1835)
4. Administrative Reforms
In the judicial department he abolished the provincial courts of appeal
established by Cornwallis
The introduction of local languages in the lower courts and English in
the higher courts in the place of Persian

Launched the revenue settlements of the north west province

Settlement was for a period of 30 years and it was made either with the
tillers of the soil, or with the landowners
Lord William Bentinck (1828-1835)
5.Social Reforms
William Bentinck made his name immortal in the history of British India
These include the abolition of Sati, the suppression of Thugs and the
prevention of female infanticide

Abolition of Sati
greatly distressed when he received a report of 800 cases of sati in a
single year and that from Bengal
He became a crusader against it and promulgated his Regulation XVII on
4 December 1829 prohibiting the practice of sati.
Practising sati was made liable for punishment by law courts
Regulation was extended to the Madras and Bombay Presidencies in
1830.
Lord William Bentinck (1828-1835)
5.Social Reforms
William Bentinck made his name immortal in the history of British India
Suppression of Thugs
most commendable measure
They were hereditary robbers.
‘strangling and robbing peaceful travellers’.
A campaign was systematically organised by Colonel
Sleeman from 1830 against the thugs
For his role in the suppression of thugs, Sir William
Sleeman was known as “Thugee Sleeman”.
Lord William Bentinck (1828-1835)
5.Social Reforms
William Bentinck made his name immortal in the history of British India
Introduction of English Education
Significant event of lord William Bentinck's administration

Appointed a committee headed by lord

Macaulay to make recommendations
for the promotion of education

Government Resolution in 1835 made

English the official and literary language
of India

1835,laid foundation of the Calcutta Medical College

Lord William Bentinck (1828-1835)
6. Evaluation
“straightforward, honest, upright, benevolent, sensible man”
social reforms such as abolition of sati and prevention of child sacrifice
eradicated age old evils from Hindu society

To enforce the regulations regarding the prohibition of sati, he was

prepared to risk his own position
Though he worked for the welfare of the Indian people, but we should
never forgot that he was the representative of the empire
The education reforms were made to anglicize Indians
In-between
Lord Auckland (1836-42) became Governor-General
First Afghan War (1836-42) was fought during his administration
Due to his failure in Afghanistan he was recalled in 1842

Lord Ellenborough succeeded him and

ended the Afghan War
also annexed the Sindh

Lord Hardinge (1844-48) fought the

first Anglo-Sikh War (1845-46) and
concluded the Treaty of Lahore
Question UPSC Pre 1997
Q. Who among the following was associated with suppression of thugs?

(a) General Henary Prendergast

(b) Captain Sleeman

(c) Alexander Burres

(d) Captain Robert Pemberton

Answer: B
Question UPSC Pre 2005
Q. Consider the following statements
1. Warren Hastings was the first Governor General who established a
regular police force in India on the British Pattern
2. A Supreme Court was established at Calcutta by the Regulating
Act,1773
3. The Indian Penal Code came into effect in the year 1860

Which of the statements given above is/are correct ?

(a) 1 and 2 (c) 2 and 3
(b) 1 and 3 (d) 1,2 and 3
Answer: C
Question UPSC Pre 2004
List-I List-II
(Features of the Indian Constitution) (Borrowed from)
A. First Anglo-Maratha War 1st Anglo Maratha War (1775-82) 1. 1767-69
B. Third Anglo-Mysore War 2. 1790-92
C. First Anglo-Burmese War 3. 1824-26
D. Second Sikh War 2nd Anglo Sikh War (1848-49) 4. 1845-46
Which of them are correctly matched
Answer: D
a. 2 and 4 b. 3 and 4
c. 1 and 2 d. 2 and 3