UPSC MainsECONOMICS-PAPER-II201820 Marks
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Q6.

Examine the features of permanent land settlement as introduced by Lord Cornwallis.

How to Approach

This question requires a detailed examination of the Permanent Settlement introduced by Lord Cornwallis in 1793. The answer should focus on its key features, including the parties involved, the revenue system established, its impact on different sections of society, and its long-term consequences. A structured approach, covering the historical context, provisions, merits, demerits, and overall assessment, is crucial. Mentioning the pre-existing revenue systems and comparing them with the Permanent Settlement will add value.

Model Answer

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Introduction

The Permanent Settlement, introduced by Lord Cornwallis in 1793, represents a landmark event in the history of British land revenue administration in India. Prior to this, revenue systems like the Zamindari system under the Mughals and subsequent experiments by the East India Company were characterized by instability and frequent revisions. The aim of the Permanent Settlement was to create a stable and predictable revenue stream for the Company, while also establishing a class of loyal landowners. This system, primarily implemented in Bengal, Bihar, and parts of Orissa, fundamentally altered land ownership and agrarian relations in these regions, with far-reaching consequences.

Historical Context and Precursors

Before the Permanent Settlement, the East India Company experimented with various revenue systems. The initial system involved collecting revenue directly from the cultivators. However, this proved difficult to administer. Subsequently, the Company adopted a system of auctioning land revenue rights to the highest bidders, which led to exploitation and instability. The need for a more stable and predictable system led to the formulation of the Permanent Settlement.

Key Features of the Permanent Settlement

  • Parties Involved: The settlement recognized three main parties – the Zamindars (landlords), the Ryots (cultivators), and the British Government.
  • Fixed Revenue Demand: The most significant feature was the fixing of land revenue at a permanent amount. This amount was approximately 89% of the revenue collected by the Company in the preceding years.
  • Zamindars as Landowners: The Zamindars were granted hereditary rights to collect land revenue from the ryots within their zamindari. They were effectively recognized as landowners, with the right to sell or transfer their land.
  • State Security: The government’s revenue was fixed, providing a secure income.
  • No Revision of Revenue: The revenue demand was not subject to revision, regardless of changes in productivity or market conditions.
  • Collection and Payment: Zamindars were responsible for collecting revenue from the ryots and paying a fixed amount to the Company.

Implementation and Regional Variations

The Permanent Settlement was primarily implemented in Bengal, Bihar, and parts of Orissa. However, its implementation varied across regions. In Bengal, the settlement was more comprehensive, while in Bihar, it was less so due to the prevalence of multiple co-sharers in land ownership. Similar systems, though with variations, were later introduced in other parts of India, such as the Ryotwari system in Madras and the Mahalwari system in North-Western Provinces.

Impact of the Permanent Settlement

Positive Impacts

  • Revenue Stability: The Company secured a stable and predictable revenue stream.
  • Creation of a Landowning Class: A class of loyal landowners emerged, who were expected to support British rule.
  • Administrative Efficiency: The system simplified land revenue administration.

Negative Impacts

  • Exploitation of Ryots: The Zamindars often exploited the ryots by imposing excessive rents and illegal dues.
  • Agrarian Distress: The rigid revenue demand led to widespread agrarian distress, particularly during periods of crop failure.
  • Increased Landlessness: Many ryots were forced into landlessness due to their inability to pay the high rents.
  • Stagnation of Agriculture: The lack of investment in agricultural improvements due to the focus on revenue collection hindered agricultural growth.
  • Rise of Absentee Landlordism: Many Zamindars became absentee landlords, neglecting the welfare of their tenants and the development of their estates.

Comparison with Other Revenue Systems

Feature Permanent Settlement Ryotwari System Mahalwari System
Revenue Demand Fixed in perpetuity Periodically revised Periodically revised
Land Ownership Zamindars as landowners Ryots as landowners Village communities as landowners
Revenue Collection Zamindars Directly from Ryots Village headmen
Regions Bengal, Bihar, Orissa Madras, Bombay North-Western Provinces

Conclusion

The Permanent Settlement, while intended to provide stability and efficiency, ultimately had a mixed legacy. It succeeded in securing a stable revenue stream for the British government but at the cost of widespread agrarian distress and exploitation. The creation of a powerful landowning class, while intended to foster loyalty, often led to absentee landlordism and the neglect of agricultural development. The system’s rigidity and lack of responsiveness to changing conditions contributed to long-term economic stagnation in the affected regions, leaving a lasting impact on India’s agrarian structure.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Zamindari System
A land revenue system where land was held by intermediaries (Zamindars) who collected revenue from cultivators and paid a portion to the state.
Ryotwari System
A land revenue system where the revenue was directly collected from the cultivators (ryots) by the government, and the ryots had ownership rights over the land.

Key Statistics

Approximately 89% of the revenue collected by the East India Company in the preceding years was fixed as the permanent revenue demand under the Permanent Settlement.

Source: Various historical texts on British India (knowledge cutoff 2023)

The Permanent Settlement covered approximately 19% of the total area of British India (as of 1900).

Source: Imperial Gazetteer of India (knowledge cutoff 2023)

Examples

The Bengal Famine of 1770

The exploitative revenue policies preceding the Permanent Settlement, including high revenue demands, contributed to the devastating Bengal Famine of 1770, highlighting the vulnerability of the agrarian population.

Frequently Asked Questions

Was the Permanent Settlement successful in achieving its objectives?

While it secured revenue for the British, it largely failed to improve the condition of the cultivators and led to significant social and economic problems. It primarily benefited the Zamindars at the expense of the ryots.

Topics Covered

HistoryEconomyAgrarian HistoryLand RevenueColonialism