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Eighteenth Century India (1701-1800

)
Transition from Medieval to Modern
Transition from Feudalism to Capitalism
Two critical transitions
Decline of Mughal empire – emergence of regional powers
Rise of East India Company
Debates
ature of change in the Eighteenth Century
Its impact on the establishment of colonial rule in India
Political condition
!reater Myghals – "ater Mughals
#uranga$eb died in %&'&
"ater Mughals( )ea*( conspiracies in the Mughal court+
War of Succession after Aurangae!
,truggle for -ower among his three sons
Muhammad Mua$$am( Muhammad #$am and .am /a*hsh
Third one favourite of #uranga$eb – Title din pahah 0,aviour of religion1 – Deccan
Mua$$am was imprisoned in %23& and released in %245 for conspiring with Deccan rulers(
"ater he was sent to .abul as !overnor to observe the movements of the rebel prince #*bar+
6n hearing the news marched towards #gra to capture the royal treasury+
#$$am was in Deccan – Reached Dholpur in #gra – fight with Mau$am – Defeated
Mua$$am declared himself as the ruler of India – Title Muhammad ,hah
"ater he defeated .ambahsh( his brother in %&'4+
"ahadur Shah (1707-171#)
-olitical and religious issues left over by #uranga$eb
!rowing factionalism within the nobility
7ad to face ,i*hs( 8ats( Marathas( Ra9puts
#fter !uru !ovind ,ingh – /ana /ahadur revolted against the Mughal rule
7e *illed )a$ir .han the governor of ,irhind and brought the areas between :amuna and ,atle9
under his control+
7e was defeated by /ahadur ,hah I in %&%' but the ,i*hs were not suppressed completely+
Fight with 8ats near #gra
The rulers of Marwar( Mewar and #9mer united against Mughals in this struggle+
/ahadur ,hah defeated them
$arathas
,ahu( grandson of ,iva9i was under Mughal control in Delhi
Marathas under Tarabai were rising against Mughals
/ahadur shah released ,ahu – /ut did not recognise him as the legal heir of the Maratha .ingdom+
Civil war in Maratha empire between ,ahu and Tarabai
Ad%inistration
"ac* of administrative e;perience of /ahadur shah and the depleting worsened the economic
%
condition of the Mughal empire
/ahadur shah died in %&%<+
War of Succession
#mong his four sons
8ahandar ,hah( #$im – us – ,han( Rafi – us – shan and 8ahan ,hah
&ahander shah emerged victorious with help of =ulfi*ar .han( a leading nobel of the Irani group in
the Mughal court+
7e was a wea* and pleasure –loving ruler+
#ppointed =ulfi*ar *han as )a$ir
7e removed the 8a$iya ta;
Close relations with Ra9a 8ai singh of #mer and conferred him the title >Mir$a Ra9a 8aisingh ,awai
and appointed him as the subedar of Malwa+
The *ing of Marwar #9it singh ws appointed as ,ubedar of !iu9arat+
7e also established close relations with 8at leader ,uraman and Chatrasal /undela
&agirdars
8ahandar shah tried to *eep a chec* on the increasing powers 8agirdars+
8agirdars were not happy with the )$ir( real power
/egan to poision the ear of the emperor against his )a$ir+
"ater emperor terminated )a$ir from the services
?sing this turbulence as an opportunity Farru*h siyar( one nephew of 8ahandar ,hah occupied the
throne with the support of ,ayyad /rithers
'arru(h siyar 171)-1*
,ayyad /rothers( #bdullah .han and 7ussain #li .han controlled the power
They came to be *nown as .ing Ma*ers
Farru*h ,iyar appointed #bdullah .han as )a$ir and 7ussain #li .han as Meer /a*shi+
+efeated ,a-.uts/ Si(hs and &ats0
'arru(h Siyar 1as an inca.a!le/ ca1ard and treacherous ruler0
2e could not tolerate the rising .o.ularity of Sayyad !rothers in the $ughal court0
"ut !efore he start action against Sayyad !rothers/ they (illed 'arru(h Siyar0
$uha%%ad Shah 17#0-38
.illed ,ayyad brothers
Mahammad shah was also inacapable( coward and pleasure loving ruler on account of he was also
*nown as >Muhammad ,hah >Rangila@+
Mughal empire declined very fast+
Many ,tate declared semin –autonomous ,tatus
i$am ul Mul* in Deccan( ,adth .han in #wadh and Murshid uli .han of /engal( /ihar and
6rissa+
adir ,hah invasion in %&A4
Ah%ad Shah 1838-43
"aw and order deteriorated and the empire wea*ened+
Emperor@s ine;perience was the main cause
)ea* financial condition
-easant revolts
Rivalries in the Mughal cpurt
Raids of #hmed ,hah #bdali
<
#hmed ,hah was deposed and *illed in prison by his own )a$ir Imad – ?l – Mul* in %&5B
Ai-ud-+in/ 1743-4*
#$i$ – udC Din( !rand son of 8ahandar shah was placed on the throne
Condition of empire further worsened
#hmed shah #bdali increased raids on Delhi
During his time Marathas became powerful+
Ala%gir II (174*-1805/ A(!ar shah II (1805-)7)/ "ahadur Shah II (18)7-1847)
Third battle of -anipat was fought during the reign of ,hah #lam II( which wea*ened the Mughal
empire+ ,ubseDuently the Mughal empire came under the control of the /ritish in the %3'A+
+isintegration of $ughal e%.ire
'actionalis% 1ithin the $ughal court
E6.ansion of the $aratha e%.ire under Pesh1as
Release of ,ahu( Civil )ar( ,ahu – /ala9i Eishwanadh 0%&%AC<'1( /a9i Rao 0%4<'CB'1( /ala9i /a9i
rao 0%&B'C2%1( Madhava Rao0%&2%C&<1( arayana Rao 0%&&<C&A1( Madhavarao II 0%&&AC421 and
/a9irao II 0%&42C%3%31
"ala-i 7ish1anadh got the powers of the collection of Chauth and ,ardesh Mu**hi from the si;
Mughal provinces of /erar( /idar( !ol*onda( /i9apur( #urangabad and .handesh
#ssisted in the plan to dislodge ,ayyad /rothers
"a-i ,ao
ConDuered Malwa and !u9arat
"ater captured the areas of /undel*hand( defeated i$am of 7yderabad in battle of -hal*hed+
7e conducted a raid on Delhi in %&A&+ Defeated the Mughal emporer and camped in Delhii for some
time
Meanwhile i$am of 7yderabad started moving to Delhi to help the emperor+ /ut Marathas
defeated the i$am at /hopal and send him /ac*+
$aratha Confedaracy
/a9irao established close relations with other Maratha chiefs+
Raghu9i bhonsle of agpur( Malhar Rao 7ol*ar of Indore( -illa9i !ae*war of /aroda and Rano9i
,cindhia of !walior and formed Maratha Confederacy+
There was a chance to the Marathas to e;tend their empire to the whole of India+ /ut the entry of
Europeans and the divisions Maratha confederacy spoiled their attempts
Se%i-Inde.endent States/ A1adh
,adath .han was an important member of the Irani group in Mughal court
assisted in the destroying of influence of ,ayyad /rothers
7e was made ,ubahdar of #gra and later transferred to #wadh+
7e died in %4A4 by committing suicide after the attac* of adir ,hah on delhi+
/efore his death he has established an Independent .ingdom of #wadh+

"engal
/engal was an important province in Mughal empire+
In %&'' Murshid Duli .han became the governor of /engal
7e too* advantage of the wea*ening power of the emperor in Delhi and converted /engal as
Independent ,tate+
A
In %&B' Deputy governor of /ihar( #livardi .han rebelled against the ruler of /engal and sei$ed
power+
,ira9 – udC daula who faced /ritish in the /attle of -lassey in %&5& was the grandson of #livardi
.han+
2ydera!ad 8 9i% ul $ul(
i$am ?l Mul* became the viceroy of Deccan in %&%A with the help of ,ayyad /rothers
In %&<B he started independent rule in 7yhderabad
$ysore 8 :i.u Sultan
,a-.uts
Marwar 08odhpur1 and #mer 08aipur1 two ma9or *ingdoms
A-it Singh of $ar1ar tried to declare independence
Mughal emperor /ahadur ,hah defeted him and concluded a treaty in %&'3+
#gain in %&%B #9it singh formed an alliance with the Ra9a of 8aipur and Durgadas Rathore and
revolted aganst Mughal emperor+
7ussian #li .han( one among the ,ayyad /rothers attac*ed 8odhpur and forced #9it singh conclude
a treaty with emperor+
#ccording to the treaty #9it singh had to offer one his daughter for marriage with Farru* ,iyar+
"ater ,ayyad /rothers supported #9it ,ingh and appointed him as governor of #9mer and !u9arat+
A%er (&odh.ur)
,awai 8ai ,ingh was the ruler of #mer+ 7e followed a strategy of nonCintervention in Mughal
politics+ #ntiCsayyad party appointed him as !overnor of #gra+
8ai ,ingh built the city and fort of 8aipur
7e is remembered in the Indian history as distinguished ,tatesman( famous diplomat( renowned law
ma*er( social reformer and a man of science+
7e built five observatories( where special arrangements were made to study astronomy+
7e had Euclid@s FElements of !eographyG and several other wor*s translated into ,ans*rit+
,ohil(hand
Muhammad .han /angash established his rule around Farru*abad( between present #ligarh and
.anpur+
"ater he was defeated by /endela chief chatrasal+
Si(hs
B
+e!ate on the first half of Eighteenth Century
Controversy on the decline of Mughal empire
Further ,tudies on the society( economy and polity of Mughal empire
Collapse of Mughal empire – most important development
attracted attention of historians for generations
Different views on the decline of Mughal empire
Economic Crisis and e;ploitation of ruling classes
-olitical turmoil and rise of regional powers triggered by regional economic prosperity
Interest in the studies on Imperial decline led to sharper scrutiny of the ,ociety and economy
Contesting ideas on the decline of the Mughal empire and nature of society
one view – loo*ing at eighteenth century in the shadow of the empire
another view – loo*ing the period through the lenses of social and economic changes and the rise of
regional powers
opposed to this view is that imperial political collapse initiated a process of social and economic
decay
Debate is called Dar* ages Es economic prosperity
Debate on the second half of Eighteenth Century
Centered around late Eighteenth Century
Transition in polity( society and economy with the entry of East India company
Themes in the debate
Transition of East India company from a business entity to a political entity
'irst the%e 8 :rade 7s Politics
Earlier studies stress on trade as driving force behind political power
later studies stress on political imperative that pushed trading interest
Second the%e 8 Co%.any state and econo%y
topics covered – emergence of regional economies
European trade and bullion imports into India
the position of labour( merchants and weavers
revenue settlements and the introduction of agrarian capitalism
Regional studies based on local records contested this view
they say that East India Company was suc*ed into vibrant indigenous political economies
the success of company is attributed to its ability to structure itself into indigenous trade and fiscal
networ*s+
They made it sustain till the early %4
th
century
:hird the%e 8 state and go;ernance
discussion on administrative( legal and military aspects
later studies on the aspects Duestion the idea that CompanyHs political sovereignty was carved in
isolation from the Indian society
:he first half of the Eighteenth Century 8 +ar( ages 7s econo%ic .ros.erity
Early historians viewed %3
th
Century political developments as integral part of Mughal empire
Decline of Mughal empire was seen as big event+
Most of the historians concentrated on the analysis of the decline of the Mughal empire
Concentration on the administrative and religious policies of the individual rulers
/ritish #dministrator scholars and ationalists loo*ed Mughal empire as ruling elite character
8adunath ,ar*ar concnetrated on the reign of #uranga$eb 0Fall of Mughal empire and 7istory of
#uranga$eb+
5
Religious policy of #uranga$eb( and Deccan campaigns
are reffered as main causes for the fall Mughal economy( institutions and society+
8 ,ar*ar – -easant rebellions which destroyed Mughal political stability was treated as 7indu
reaction to Religious policy of #uranga$eb
,ubseDuently ,ri Ram sharma and Iswari -rasad also e;plained that religious policies of the rulers
was the chief cause for the fall of the empire+
These wor*s describe Eighteenth century as politically choatic and economically crisis prone+
From %45's onwards Mar;ist historians started loo*ing the fall of Mughal empire in relation to
material conditions
,atish Chandra – the defects in the Mughal administrative institutions li*e 8agir and Mansab were
the main cause
Efficient functioning of these systems depended on the availability of revenue and its collection and
distribution+
Mughal administration failed to ensure the smooth functioning of these institutions during the reign
of #uranga$eb and heralded the process of decline+
From %42's onwards( economic historians started e;plaining the decline of Mughal empire and the
subseDuent political and social unrest in terms of fiscal policy+
Irfan 7abib e;plained that the high rate of land revenue led to large scale e;ploitation of rural
peasantry( which led to the peasant migration and rebellion+
This further led to the agrarian crisis and wea*ening of the political power of the Mughals+
M+#thar #li also agreed with Irfan 7abib and said that Mughal empire was fiscally centralised state
but differed with 7abib on the cause of the decline – high land revenue demand
#thar ali said that shortage of 9agirs was the main cause for the fall of the empire+
7e said that the deficit was created with the e;pansion of the empire to the into less fertile lands(
especially into Deccan+ This increased number of nobles without income yielding 8agirs+ Thus the
shortage of 9agirs created administrative problems and further led to the economic crisis+
8ohn F+ Richards – Mughal #dministrationin !ol*onda( %4&5
Challenged the idea that there was a shortage of 8agirs in the region and Duestioned the concept that
the absence of 8agirs was the main cause for the fall of the Mughal empire
,atish Chandra( later wor*s
,hifted the focus to economic aspects and argued that 8agirs became few and relatively infertile+
This led to the discrepancy between the estimated revenue and e;penditure+
Cultural failure 0#thar #li1
The downfall of Mughal empire is also viewed as a cultural failure+ Culture is seen in term of
technological( intellectual and economic referents+
The economic crisis that led to the decline is attributed to the relative economic( technological and
intellectual rise of in the period from %5''C%&'' as a centre of world commerce+ Europe emerged as
the principle mar*et for lu;urious goods and it attracted high value goods from eastern mar*ets+
This increased the cost of lu;ury items in India and intensified the agrarian e;ploitation –
/ac*wardness in Technological and intellectual fields did not allow towns to emerge as safety
valves for the people+ #grarian crisis and revolts+
E%ergence of regional .o1ers
2
#ll the above views pro9ected Eighteenth century as >Dar* #ge@+ The importance given to imperial
centreIMughal empire did not allow historians to loo* into the Eighteenth century from regional
point of view+ They have attributed the rise of regional powers to the imperial policies+ They argued
that imperial policies helped the emergence of regional powers+ Emergence of regional states li*e
Ra9puts( Marathas( ,i*hs were the result of agrarian crisis in the Mughal empire+ They thought that
the agrarian crisis and e;ploitation forced the peasantry to support regional leadership+ They also
argued that the newly emerged states li*e Marathas( ,i*hs and others continued the e;ploitative
tendencies of their predecessor( the Mughal ,tate+ Thus regional political alignments were also
e;plained within the framewor* of the functioning of the Mughal >#grarian system@ alone+
Alternati;e ;ie1s on the Eighteenth century .olitical econo%y
Moved beyond the Mughal agrarian system and machinery of the revenue e;traction to other *inds
of nonCeconomic productions and politicoCeconomic engineering by Mughal functionaries+ They
have emphasi$ed on a range of factors that fuelled the imperial decline+
+ecline in trade
In the face of European advances into India( there was an increase in the inland trade and decrease
in the e;port trade through port cities+ The port city of ,urat declined around %&<'( similarly
Machilipatnam in ,outh India and Dacca in Eastern India+ )hereas colonial port cities li*e
/ombay( Madras and Calcutta rose to prominence 0#shin Das !upta1
Rural commerce in Eighteenth Century
The impact of e;ternal invasions( European and English competition in Trade and the ruination of
Mughal nobility and aristocracy led the rural commercial production to found new mar*ets within
the subcontinent+ This compensated the loss in the foreign trade+ 0!rover1
,egional le;el studies
,tudies on the regional level changes in the period of transition provo*ed a reconsideration+ The
made a strong a case for the study of this period from the regional point of view instead of imperial
point of view+ 0Mu$affar #lam1
Increasing assertiveness of the regional powers rather than in terms of Mughal fiscal and
administrative policies alone+
Econo%ic .ros.erity
Mu$affar #lam@s study of #wadh – provides evidence of the remar*able economic growth and
prosperity which resulted in $aminddari unrest in the region+ Economic prosperity was a
conseDuence of increased commercialisation ad monetisation of economy that was initiated in the
heyday of Mughals+ The wealthy $amindars too* advantage of their newly acDuired assets and
refused to comply with the Mughal commands+ #s they rose in rebellion( the Mughal subedar in the
region enhanced his power by using the unrest as bargaining chip with the emperor+ It is under the
leadership of subedar or provincial leaders the regional assertion ultimately led to the political
autonomy+
&
Econo%ic and social conditions during 18
th
Century India
Dar* age in the Indian 7istory
#ll round deterioration
Economic( ,ocial and cultural setbac* during %3
th
century
#griculture – Remained technically bac*ward and stagnant
-easantry wor*ed hard to compensate this deficiency
The condition of peasantry was miserable
,tate increased revenue demand
=amindars and 8agirdars oppressed peasants
The Civil wars( e;ternal invasions added misery to the peasants
Indian trade and industry also suffered
Constant wars and breach of law and order disrupted internal and e;ternal trade
#ffected the growth of industrial production
Rise of independent state also affected the trade
These states charged ta;es on trade
Many prosperous cities which were centres of commerce were plundered by internal rivals and
e;ternal invasions
Destruction of flourishing industries
Delhi was plundered by adir shah and #hmed ,hah abdali
Many cities of !u9arat( Malwa and the Deccan were plundered
Impoverishment of nobility
obles were the largest consumer section of lu;urious goods in the society
Insufficient incomes affected their life style and further led to the deterioration of internal and
e;ternal trade
In spite of this
India still remained one of the main centers of the world trade
It attracted main European countries to establish direct trade lin*s with India
India still remained largescale manufacturer of cotton( sugar( rice( 9ute and other products
Cotton was most important e;port from India
Murshidabad( -atna( Dacca( ,urat( #hmedabad( /anaras( "uc*now( "ahore were some of the
famous centres of te;tile industry
,hip building was another important industry
European companies used to purchase ships from India
India maintained trade relations with many counties even during this century and en9oyed a
favourable balance+
Compared to previous to centuries India was certainly a loser in the trade and industry
/ut maintained its economy at a fairly good balance and en9oyed economic prosperity
/ut on the economic ground the worst feature was economic disparities among Indians+
6n the one side( there were *ings( nobles( industrialists and traders who en9oyed all sorts of
comforts and lu;uries+
6n the other hand( there were peasants( labourers( handicraftsmen and other common people lived
on the minimum subsitence level and suffered and suffered from all sorts of i9ustices and
ineDualities
Social degeneration and cultural decadence
Two Divisions in the Indian society
Rich and upper classes – minority of the population( and common masses
Distinctions in the social and cultural habits among the two classes
3
7indus were divided into several castes
Caste system was rigid
InterCdining and interCcaste marriages were prohibited
Caste regulations were strictly enforced by caste councils and panchayats through fines and
sometimes e;pulsions from the caste+
Caste still determined the professions of the individuals
Muslims were also divided in to different groups on the basis of race( tribe and profession
The foreign muslims and converted muslims were clearly distinguished
The foreign muslims were further divided as Iranis( Turanis and #fghans on the basis of race
,unni and ,hia differences were also there+
Irrational social practices of hindu society – child marriages( dowry system( -ractice of sati(
Devadasi system in temples( -rohibition on the remarriages of widows+
Muslim society – polygamy and purdah system in Muslim society
Cultural deterioration
Emperors( obles patronised arts and culture
The impoverishment of empire and the nobility led to the withdrawal of the patronage
This led to the deterioration of culture – fine arts( literature( dance and other performing arts
/ut the emergence of independent states in several regions of India saved country from this
degeneration+ -rovided patronage to arts and literature
+egradation of %orals
Constant wars( ,truggles for power( Economic decline( social divisions and cultural stagnation
deeply affected the moral values of the upper classes of the society in the %3
th
century
The nobles ad 9agirdars in particular degenerated in their private and public life
They lost the virtues li*e loyalty( gratitude( devotion and honesty and pursued their selfish ends+
:he %ain 1ea(ness of the Indian society of this .eriod 1as in the field of science and
technology
Indians has been neglecting positive sciences for several centuries and failed to realise the
conseDuences of their neglect in the eighteenth century as well+
)hile Europe has been undergoing a scientific development( the Indians not only failed to to
attempt for its development but even remained completely ignorant of what was achieved by the
)est in this field+
It affected the growth of Indian society
Indian society remained completely traditional in every field+
That finally led to sub9ugation of India by the )estern Countries+
4
Second 2alf of the 18
th
Century< :ransition to Colonialis%
#rrival of Europeans and establishment of Company rule in India
Renaissance( scientific thin*ing( Industrial revolution( transition from feudalism to capitalism(
search for mar*ets and colonies
#dvent of -ortuguese in India
Dutch
/ritish
Founded on A% December %544 by a Royal charter( English East India company was a 9oint ,toc*
company+
Intended to carry out trade
Monopoly over the trade between England and #sia and right to use force+
Managed by East India 7ouse in "ondon with <B directors and supporting staff
In India – the /ritish factories were headed by a /ritish governor and council
-ermissions from Mughal emperor and local rulers
Construction factories – to e;ercise a measure of autonomy
Madras %2B'( /ombay %223( Calcutta %24'
,ira9 ud daulah %&52 ordered /ritish to stop fortifications
Release the fugitive .rishna Eallabh – who was charged with fraud
/ritish Ignored the demands – awab attac*ed Calcutta on <' 8une %&52
Internal crisis in the ,tate – Merchants( /an*ers ad 6fficials
Different e;planations for the rift in the Darbar
,+C+ 7ill – antiCmuslim /lac* against the capricious and highhanded nawab
/ra9en gupta – !rowing pro;imity between merchants and ban*ers towards /ritish
French Company
#nglo French ,truggle in ,outh India
First Carnatic )ar – %&B2CB3
,econd Carnatic )ar – %&B44C5B
Third Carnatic )ar – %&52C%&2A
Causes for the success of /ritish against French
The /ritish ConDuest of /engal
/attle of -lassey – %&5&
,ira
Dual system of #dministration in /engal
#nglo – Maratha )ars
Causes for the defeat of the Marathas
#nglo – Mysore )ars
#nne;ation of ative states
#nglo Mysore )ars
%'
Issues of +e!ate
Company@s rise to political dominance
Impetus behind the e;pansion
Impact on the changing relations between ,tate and society

Themes of Debate
Trade and Empire
,tate and Economy
Military( law( governance and the company
,tate and ideology
:rade and e%.ire
Discussion on reasons which led to the company@s transition to political power
6lder accounts of /ritish conDuest view the English company as being forced to transform itself
into a territorial power because of the insecurity caused by the collapse of the Mughal empire and
the emergence of rival European power as a threat to its trading interests+
The shift of company from Trade to political domination is also attributed to the spurt in European
production and trade in the Eighteenth Century+ #s the Indian te;tiles began to be e;ported( and
paid for in bullion( the mercantilist critiDue of the drain of bullion is intensified+ #ccess to Indian
revenues was seen as one of the ways to solve the problem+
R+ Mu*her9ee emphasises the >simultaneous nature@ of /ritish political and economic e;pansion
into #wadh+ Economic penetration moved hand in hand with growing /ritish political control+ Thus
Trade and the flag were interrelated in the period of mercantile domination+ 7e argues that it was
not simply the desire to establish trading monopolies that resulted in the /ritish territorial
e;pansion+ The /ritish were drawn into indigenous politics because of the necessity of providing
the military machinery whereby they could enforce a monopoly( which inevitably led to the need to
provide the finance for such an infrastructure+
State and Econo%y
Agrarian econo%ies and the co%.any state< continuity or change=
Earlier studies of economic historians – R+C+ Dutt and Dadabhai aoro9i – colonialism as an
economic and political dis9unction+
Rana9i !uha – -ermananet settlement as an indispensable measure to ensure private ownership over
land – clear brea* with the past+
-rocess of economic changes initiated by the colonial rule 0/+/+ Chaudary and ,abyasachi
/hattacharya1
/ritish rule initiated important changes in agricultural and nonCagricultural sectors
7igh rate of land revenue through permanent settlement of %&4A – Crucial changes in the agrarian
society – increase in the rural credit – sale of estates of the defaulting $amindars – changes in the
land mar*et and composition of agricultural labourers and share croppers+ -auperised peasants also
9oined in the category of labourers+
Famines of %&24C&' also caused rural depopulation – impact on production – rise in prices of
production and crisis in rural society+
Irfan 7abibC
English company@s trading operations dislocated and disrupted indigenous Indian economies+ The
company state was located e;ternal to the society( it was e;ploitative in character+ The grant of
diwani or revenue powers reduced bullion inflows into India( caused inflation and intensified drain
of wealth and caused large scale deindustrialisation+
%%
Continuity in trading and ad%inistrati;e institutions
Effects on the society began only from the beginning of the ineteenth century+ The success of the
company is attributed to its adaptation of indigenous practices and systems in administration+
0)ashbroo*1
Trade( nonCagricultural production and he company state – prosperity or declineJ
Company established monopoly over salt( opium and saltpetre+ Introduction of agency and contract
system completely sidelined the middlemen and bro*ers from the industries li*e te;tiles+
The surplus of /engal was used to purchase e;port goods+ The state was set to subordinate
Indigenous capital to /ritish capital+ 0/hattacharya1
-+8+ Marshall and c+a+/ayly argue that the structure of commerce and agricultural and manufacturing
industry did not show any crumbling and continued to deliver even after the company had acDuired
political power+
,e;enue Settle%ents/ introduction of agrarian ca.italis% and the English co%.any
Continuity and change debate in agrarian sphere as well
-ermanent ,ettlement of %&4A in /engal( ineteenth Century attempt to introduce agrarian
capitalism that earmar*ed the Company@s agrarian order became controversial issues+
Rana9it !uha and Eric ,to*es C innovative character of the permanent settlement
Recognising private property as a basic principle of the government
,ignalled a clean brea* from the preCcolonial past
Introduced legally sanctioned private property rights in land
!uha – highlighted the intellectual influences that shaped the permanent settlement – mercantilist
and free trade advocates
Implications of the settlement – creation of landed estates( land mar*ets( and the emergence of new
$amindaries+ =amindaris invedted invested capital to purchase land( a system of rural credit
developed( and land inevitably began to pass from debtors to creditors+
#gainst change – Ratnale*ha Ray
"imitations of the permanent settlement in introducing any ma9or transformation in preCcolonial
order+
Changes were confined to upper layers of the society+ #t village both landholdings and agricultural
base remained unaltered+ Even at the upper levels of the rural society( it was not land that changes
hands but rather perpetual rights in revenue management+ -roprietary rights were conferred on
$amindars who already held such rights over revenue collection or land+
Company state and governance – administration( the military and law
Sources
,eema #lavi( Eighteenthe Century in India
-8 Marshall( Eighteenth Century in India
"a*shmi ,ubramanian( 7istory of India( %&'&C%35&
,atish Chandra( Medieval India
%<