UPSC MainsHISTORY-PAPER-II202210 Marks
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Q8.

Can you explain how, after acquiring Diwani, the government of the East India Company functioned like 'an Indian ruler'?

How to Approach

This question requires a nuanced understanding of the East India Company’s transition from a trading entity to a political power. The answer should focus on how the acquisition of Diwani rights in 1765 enabled the Company to assume functions traditionally performed by Indian rulers – revenue collection, administration of justice, and maintaining law and order. Structure the answer by first explaining the context of Diwani acquisition, then detailing the ways in which the Company’s governance mirrored that of Indian rulers, and finally, highlighting the differences and the consequences of this shift. Focus on specific examples of policies and administrative practices.

Model Answer

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Introduction

The East India Company (EIC), initially a mercantile enterprise, gradually transformed into a significant political force in India. A pivotal moment in this transformation was the acquisition of the Diwani of Bengal, Bihar, and Orissa in 1765, following the Battle of Buxar. The Diwani, meaning the right to collect revenue, granted the EIC unprecedented control over the economic and administrative affairs of these provinces. This acquisition wasn’t merely a financial gain; it compelled the Company to assume responsibilities traditionally held by Indian rulers, effectively functioning as a sovereign power, albeit with unique characteristics and ultimately exploitative intentions. This essay will explore how the EIC, after acquiring Diwani, began to govern like an Indian ruler, examining the similarities in administrative functions and the underlying differences.

The Context: Acquisition of Diwani and Initial Challenges

The Battle of Buxar (1764) decisively established British supremacy in Bengal. The Treaty of Allahabad (1765) granted the EIC the Diwani rights, while the Nizamat (judicial and police powers) remained with the Nawab, who was a puppet in British hands. Initially, the Company leased out revenue collection to Indian zamindars and relied on Indian officials for administration. However, rampant corruption and inefficiency led the Company to gradually assume direct control.

Administrative Functions mirroring Indian Rulers

Revenue Administration

Like Indian rulers, the EIC’s primary concern was revenue collection. They initially continued the existing Mughal revenue system, but gradually introduced changes. The Permanent Settlement of 1793, implemented by Lord Cornwallis, created a new landholding system resembling the traditional Zamindari system, but with fixed revenue demands. This aimed to create a stable revenue stream for the Company, similar to how Indian rulers relied on land revenue. Revenue was collected through a hierarchy of officials – Collectors, Daroghas, and Amin – mirroring the Mughal Qazis, Foujdars, and Karoris.

Justice and Law & Order

The EIC established courts – the District Diwani Adalat (civil) and the District Faujdari Adalat (criminal) – to administer justice. Initially, these courts were staffed by Indian Qazis and Muftis, applying Islamic law (Sharia) and local customs. However, with the gradual introduction of British legal principles, a dual system of law emerged. The Company also maintained a police force, initially relying on local Thanedars, but later establishing a more organized police system, similar to the Kotwals and Chaudharis of Indian kingdoms. The Sadar Diwani Adalat and Sadar Nizamat Adalat were established as appellate courts, functioning like the imperial courts of Indian rulers.

Military Organization and Warfare

The EIC maintained a large army, initially composed of Indian sepoys led by British officers. They engaged in warfare with neighboring Indian states, expanding their territory and influence, much like the expansionist policies of Indian empires like the Marathas and Mughals. Forts were built and garrisoned, and treaties were signed with Indian rulers, mirroring the diplomatic and military practices of Indian states. The Company’s military campaigns, such as the Anglo-Mysore Wars and the Anglo-Maratha Wars, were conducted with similar strategies and tactics employed by Indian armies.

Patronage and Symbolic Authority

The EIC, like Indian rulers, engaged in patronage of religious institutions and offered grants to religious leaders to maintain social order and legitimacy. They also adopted certain symbols of authority, such as maintaining a court, issuing farman (royal decrees), and holding darbars (royal courts). The Company’s officials often adopted the titles and customs of Indian rulers to project an image of power and authority. For example, Warren Hastings attempted to portray himself as a benevolent ruler, similar to Mughal emperors.

Differences and Consequences

Despite the similarities, the EIC’s governance differed significantly from that of Indian rulers. The primary difference lay in the Company’s ultimate objective: maximizing profits for its shareholders. Indian rulers, while often concerned with revenue, also had responsibilities towards their subjects, such as providing welfare and maintaining social harmony. The EIC’s policies, such as the high revenue demands and the suppression of local industries, often led to economic hardship and social unrest. Furthermore, the EIC’s legal system was increasingly biased in favor of British interests, and its administration was often characterized by corruption and inefficiency. The Company’s rule also led to the decline of Indian handicrafts and the rise of British economic dominance.

Feature Indian Rulers East India Company
Primary Objective Welfare of subjects, territorial expansion, prestige Maximizing profits for shareholders
Revenue System Flexible, based on local conditions Initially flexible, later rigid (Permanent Settlement)
Justice System Based on religious laws and customs Dual system – Islamic law initially, then British laws
Legitimacy Derived from tradition, divine right, and military power Derived from military power and treaties

Conclusion

The East India Company, after acquiring Diwani, undeniably adopted many administrative practices of Indian rulers – revenue collection, justice administration, military organization, and even symbolic displays of authority. However, this imitation was superficial. The Company’s governance was fundamentally driven by commercial interests, leading to exploitative policies and ultimately undermining the economic and social fabric of India. The transition marked a significant shift from a system of governance rooted in local traditions and obligations to one focused on maximizing profits for a distant shareholder base, laying the foundation for colonial rule and its lasting consequences.

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

Diwani
The Diwani was the right to collect land revenue and administer civil justice. It was a crucial source of revenue and power for the Mughal emperors and later, the East India Company.
Nizamat
The Nizamat referred to the administration of justice and police powers. Initially retained by the Nawab of Bengal after the Battle of Buxar, it was gradually brought under the control of the East India Company.

Key Statistics

Bengal's revenue increased from £700,000 in 1765 to £3.5 million in 1777 under Company rule, demonstrating the increased extraction of wealth.

Source: William Dalrymple, *The Anarchy* (2019)

By 1857, the East India Company controlled approximately 60% of the Indian subcontinent, directly or through subsidiary alliances.

Source: Knowledge cutoff - General History textbooks

Examples

The Permanent Settlement

Lord Cornwallis’s Permanent Settlement (1793) fixed land revenue at a high level, creating a class of zamindars who acted as intermediaries between the Company and the cultivators. This led to increased exploitation of the peasantry and widespread agrarian distress.

Frequently Asked Questions

Was the East India Company’s rule beneficial for India?

While the Company introduced some modern administrative and legal systems, its primary focus on economic exploitation and political control resulted in significant harm to India’s economy, society, and political institutions. The benefits were largely limited to the Company and its shareholders.

Topics Covered

HistoryPolitical ScienceColonial AdministrationDiwani RightsGovernance