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Company Rule & Colonial Economy

History & Culture

Useful for: UPSC Civil Services

Overview

The East India Company turned trade into territorial power; its revenue systems and policies drained wealth and restructured India’s economy.

Key points

The Treaty of Allahabad (1765) gave the Company the Diwani of Bengal, Bihar and Orissa.
Regulating Act (1773) and Pitt’s India Act (1784) began parliamentary control.
Charter Act 1813 ended the Company’s trade monopoly in India (except tea and trade with China); Charter Act 1833 ended its trading role and created the Governor-General of India.
Permanent Settlement (1793, Cornwallis) in Bengal; Ryotwari (Munro) in Madras; Mahalwari (Holt Mackenzie) in the north-west.
Subsidiary Alliance (Wellesley) and Doctrine of Lapse (Dalhousie) expanded British control.
Dadabhai Naoroji explained the "drain of wealth" in Poverty and Un-British Rule in India.

Practice MCQs

From the perspective of definition and scope, which one of the following statements about Company Rule & Colonial Economy is correct?
1. Company Rule & Colonial Economy is unrelated to institutions, processes or real-world applications.
2. Company Rule & Colonial Economy has no exceptions or limitations in exam analysis.
3. The East India Company expanded from commercial power to territorial rule through war, diplomacy and revenue control.
4. Colonial land-revenue arrangements were uniform across all regions and periods.
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Answer: (c) The East India Company expanded from commercial power to territorial rule through war, diplomacy and revenue control.. The East India Company expanded from commercial power to territorial rule through war, diplomacy and revenue control.
Consider the following statements on Company Rule & Colonial Economy, focusing on definition and scope: 1. The East India Company expanded from commercial power to territorial rule through war, diplomacy and revenue control. 2. Colonial land-revenue systems varied across regions and shaped agrarian relations differently. Which of the statements given above is/are correct?
1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2
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Answer: (c) Both 1 and 2. Both statements are correct.

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Notes and questions are written by Kundali IQ for practice. They are not official papers; always check the latest official notification for the syllabus and pattern.