WBBSE Chapter 4 Nature of Colonial Economy Salient Points Introduction
Industrial Revolution:
Radical changes took place in the industrial production system and the general lifestyle of the people due to the use of advanced technology in the middle of eighteenth-century England and then spread to other countries of Europe. Several new machines and devices were invented at that time. This is called the Industrial Revolution
1. Muslin:
Muslin is a very fine cotton cloth woven by the weavers of Dhaka in undivided Bengal. Its texture was so fine and smooth that an entire saree could be folded and placed inside a matchbox.
2. Eksala System:
Warren Hastings allocated land to the Ijaradars every year. auction. This system was introduced in 1717 and was known as the ‘Eksala’ system.
Key Features of Colonial Economy Notes
WBBSE History Chapter 4 Economic Policies Of British Rule In India
3. Panchsala System:
Warren Hastings toured Nadia in June 1772 as the Chief of the Mobile Committee and introduced a new land revenue system. This was known as the Panchsala or Ijaradari system. Here the agreement was made for five years. The Amini Commission was formed in 1776 to evaluate the utility of this system.
Based on the commission’s report, the Company authorities replaced the Panchsala with the Eksala system, i.e. one-year agreement.
Impact of British Rule on Indian Economy Notes
4. Auction System:
The mediators who collected revenue sometimes used the auction system. Land was handed over to the highest bidder. Here the amount of revenue collected was variable.
The rate of revenue or ryot was newly determined every year. To avoid discrepancies, the Company introduced the permanent settlement system.
WBBSE Class 8 Colonial Economy Notes
5. New Mahajans:
Many city dwellers and traders bought lands permanently to become landlords but they were not acquainted with rural life or agricultural procedures. Naturally, they could understand the problems of the farmers.
They simply tried to extract revenue by hook or crook. Thus the farmers of Bengal became the victims of the new Mahajan.
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6. Tax Policy of the British Company :
The British company destroyed the indigenous industries through the establishment of the dual government system as well as by using inequal tax policies. They took tax concessions but imposed high taxes on Indigenous products and thus completed the destruction of Indigenous industries.
Important Definitions in Colonial Economy
7. Jewel of British Empire:
The British used the resources of colonial India during the Industrial Revolution. Since the time of the Sepoy Mutiny, they met all the administrative expenses from the revenue collected from India.
They sent the surplus wealth to England. They used India as a raw material supplier as well as a market for their finished products. Therefore, India was the most expensive jewel of the British Empire.