Indian economy under British rule

land revenue settlement

Permanent settlement or Istmarari settlement- this was introduced by
Lord Cornwallis in Bengal, Bihar & Orissa in the year 1793. under this, landlords
were treated as the owner of the land. landlords need to pay 10/11 to British and
remaining 1/11 will be retained by landlord.

Ryotwari settlement- this was introduced by Colonel Reed and Thomas Munro
in the decade of 1820 in Madras. later on, this was also introduced in Bombay
Presidency, Assam etc. Under this, peasants were treated as owner of the land.

Mahalwari settlement- this was introduced by halt Mackenzie and Martin bird
in the decade of 1830's in Central province, part of Punjab, United province etc.
Mahal means village or estate.

Because of British policy India's handicraft industry was declined.

rise of modern industries-

First railway line was built in the year 1853 between Bombay to Thane. during
this time Lord Dalhousie was the governor general.
1853- Kawasji Nanabhai established India's first modern cotton textile factory in
Mumbai.
1855 George Auckland established India's first modern Jute mill factory at rishra
near Kolkata.
In the year 1907 JN Tata at Jamshedpur, Jharkhand established India's first
modern modern iron and steel factory.
Drain of wealth- one sided transfer of Indian resources and wealth towards
Britain is known as drain of wealth. This theory was given by grand old man of
India Dadabhai Naoroji in his book poverty and unbritish rule in India. Ramesh
Chandra Dutta in his book economic history of India explained detail about drain
of wealth.
1757 to 1813- Mercantilist exploitation
1813 to 1857 or 1860- Industrial Capitalism
1860 to 1947- Financial Capitalism
On the basis of Acworth committee recommendation in the year 1924 Railway
budget was separated from general budget
James Wilson created India's first Budget in 1860. (The first Union Budget of
Independent India was presented by RK Shanmukham Chetty on November 26,
1947).
Bank of Hindustan, which was established in 1770
The first Bank of India with Limited Liability to be managed by Indian Board
was Oudh Commercial Bank. It was established in 1881 at Faizabad.
Punjab National Bank is the first bank purely managed by Indians, which was
established in Lahore in 1895.
First Truly Swadeshi bank – Central Bank of India is called India’s First Truly
Swadeshi bank, which was established in 1911 and wholly owned and managed
by Indians.