The British East India Company Rule

British annexation policies

British adopted two important policies for annexation of the territories in India.

Subsidiary Alliance:

• According to this treaty, East India Company would assume responsibility of native states from internal and external dangers.

• British would set up standing army in the princely state.

• For maintenance of this army the British were allotted some territory where they got rights to collect revenue.

• The final shape of this system was given by Lord Wellesely (1798-1805).

• Earlier during Allahabad treaty(1765), Awadh was made protector state of British under Subsidiary alliance by Robert Clive.

Some Indian states those signed Subsidiary alliance with British:

• Awadh in 1765

• Mysore in 1799

• Pewshwa of Maratha 1802

• Jodhpur

• Bhonsle

• Scindia

Doctrine of Lapse:

• It was introduced by Lord Dalhousie (1848-56).

• According to this, in the absence of real heir the Indian state would be merged into British India. Adopted sons of the ruler were not allowed to inherit the throne.

• Some Indian states those included in the British territory by Doctrine of Lapse policies were

1. Satara in 1848;
2. Jaipur & Sambhalpur in 1849; 
3. Bhagat in 1850;
4. Udaipur in 1852;
5. Jhansi in 1854;
6. Nagpur in 1854;

Land Revenue System of British

Zamindari System/Permanent Settlement:

• It was drafted by Sir John Shore Committee.

• It was introduced by Lord Cornwallis in 1793 and planned by John Shore.

•Zamindari system was implemented in Bengal, Bihar, Orissa, Varanasi and North Cauvery Delta(northern portion of Madras presidency).

•Rate was revised observing ten Years of productivity

• In this system, Zamindars were the land owners who paid 10/11th of the revenue share to the company and kept 1/11thof the revenue with them.

Ryotwari System (1820):

•It was introduced by Thomas Munro and Col.Charles Reed.

•It was implemented in Baramahal Rayalaseema, non–zamindari territories of Madras and Bombay presidency, Coorg, Assam and eastern Punjab.

•In this settlement, a direct settlement was made between the Government and the peasants.

•The revenue rates of the Ryotwari System were 50% where the lands were dry and 60% in irrigated land.

•Rate of tax was periodically revised.

Mahalwari System:

•It was introduced by Holt Mackenzie and Robert Merttins Bird.

•It was implemented in Gujarat, Agra, Central Provinces, Punjab, Ganga Valley and North-Western Provinces.

•In this system, the responsibility of collecting taxes was with the village or Mahal.

•Ownership rights were vested with the peasants.

Drain of Wealth Theory

• Dadabhai Naoroji in his book ‘Poverty and Un-British rule in India’ in 1867CE mentioned the term ‘Drain of Wealth’ to describe the colonial exploitation of the economy.

• It means the migration of the resources of India to England without any profit. Dadabhai Naoroji called it as Home Charges.

Drain of Wealth constituents:

1. The tributes and the gifts from the native rulers;
2. Profits earned in trade and spoils;
3. Revenue secured through heavy taxation;
4. Dadabhai Naoroji called it as Home Charges;

• Some supporters of this theory are R.C. Dutt, M.G. Ranade, Prithwis Chandra Ray, G. Subramania Iyer, Vasudeo Balwant Phadke, GV Joshi, and GK Gokhale etc.

• They realized that the aim of colonialism is to convert India into a source of raw materials and market for finished metropolitan goods of different European factories.

Development of Communication System under Company Rule in India:

▪ Grand Trunk Road between Kolkata and Delhi was started in 1839.

▪ Steam Engine was introduced in 1852.

▪ First Railway was started in 1853 ,from Bombay to Thane.

▪ Posts and Telegraph were started by 1853, first telegraph line was from Calcutta to Agra.

▪ Dalhousie introduced the postal stamp in India.

▪ Kolkata and Delhi were connected by underground cable network in 1857.

Administrative Organizations under Company Rule in India:

▪ Civil Services was introduced in India by Cornwallis . He is known as the father of Indian Civil Services.

▪ Indian Police was also established by Cornwallis even before the police system came into existence in England.

▪ Warren Hastings started civil and criminal courts in India. However, Cornwallis established it by setting up a Diwani Adalat in each district.

▪ Macaulay formed the Indian Penal Code.

▪ William Bentick banned Sati at the instance of Raja Ram Mohan Roy in 1829.

▪ Hindu Widow Re-marriage Act was passed by Dalhousie in 1856. Warren Hastings set up Calcutta Madrasa for study of Muslim laws in 1781.

▪ Jonathan Duncan started Sanskrit College at Varanasi for study of Hindu law and philosophy in 1791.

▪ Macaulay introduced English Education in India. He was known as the father of English education in India.

Acts

Regulating Act 1773

• It was the first attempt by the British government to regulate the activities of British East India Company.

•Governor of Bengal was made Governor General of Bengal and an executive council was introduced with 4 members.

•First Governor General of Bengal was Warren Hastings.

•Supreme Court at Calcutta was established with Chief Justice and 3 judges (1774).

• It prohibited servants of the company from private trade and bribe or presents from natives.

•Asked the court of directors to report its revenue, civil and military affairs in India.

Act of 1781

•The British Parliament passed the Amending Act of 1781 which is also known as the Act of Settlement.

•It exempted the Governor-General and the Council from the jurisdiction of the Supreme Court for the acts done by them in their official capacity.

Pitt’s India Act 1784

•Commercial and political functions of the company were separated.

•Court of directors was made to look after commercial affairs .

•Board of Control was constituted to manage political affairs.

Charter Act 1813

•Company’s monopoly over Indian trade was abolished except in tea and opium or trade with China.

•Indian trade was thrown open to all British subjects (Free Trade started) .

•Missionaries were allowed to preach in India.

•It provided for the spread of western education among the inhabitants of the British territories in India.

•A sum of Rs. 1 Lakh was set aside for promotion of education in India.

Charter Act of 1833

•Made Governor General of Bengal as Governor General of India.

•First Governor General of India was William Bentick(He was also last Governor General of Bengal).

•Deprived of governors of Madras and Bombay their legislative power.

•The laws made under the previous acts were called as Regulations, while laws made under this act were called as Acts.

•Ended monopoly of British East India Company as a commercial body.

•Open competition for civil services was suggested. But it was not implemented.

Charter Act 1853

•Separated legislative and executive functions of the Governor General’s council.

•Formed Indian (Central) Legislative Council which functioned as a mini parliament.

•Open competition for civil services was introduced for first time.

•Extended company rule over India without mentioning any period.

•Introduced local representatives in Indian (Central) legislative council.

•Out of 6 new members, 4 were nominated by governments of Madras, Bombay, Bengal and Agra.

Revolt of 1857

Causes

• Political Causes: The policies of Doctrine of lapse, Subsidiary Alliance.

• Economic Causes: Heavy Taxation, Discriminatory Tarif Polices against Indian products and destruction of traditional handicrafts.

• Military Causes: Indian soldiers were paid low salaries. They were not posted above the rank of a Subedar.

•Socio-Religious Causes: British social reforms like Widow Re-marriage ,Abolition of Sati, Education for Girls, Promotion of English Education

• Triggering cause of the revolt was the introduction of Enfield Riffle. Sepoys refused to use the new Enfield Gun on the suspicion that cartridge was made of cow and pig fat.

• On March 29, 1857, Mangal Pandey and his cousin Iswar Pandey of Barackpore (Bengal) regiment started the revolt. They were immediately hanged by the British officers.

• On May 10, Captain Bhakt Khan of Meerut regiment organized the revolt.

• The sepoys entered Delhi and occupied it. Declared Bahadur Shah as the Emperor of India and head of the revolt.

[ sepoy Magal Pandey belongs to "34th Bengal Native Infantry"]

Major Regions of the Revolt and the leaders and Suppression of the revolt

• Canning was the Governor General.

• Collin Campbell was the Chief Commander of Operations.

 • Bahadur Shah was imprisoned and sent to Mandalay jail in Myanmar.

Impact of Revolt of 1857:

• After the Sepoy Mutiny, the British Parliament passed Government of India Act in 1858, which put an end to the rule of the Company.

• Canning read out the Queen’s Proclamation in Allahabad Durbar .

• The control of the British government in India was transferred to the British Crown.

• Marked the end of British Imperialism and Princely states were assured against annexation.

• Doctrine of lapse was withdrawn.

Opinions on the 1857 Revolt by different Scholars:

• Sepoy Mutiny by Sir John Seely (British Historian).

• Planned War of Indian Independence by VD Savarkar.

• Civil Rebellion by SB Choudhury.

• Neither “first” nor “national” nor ‘’a war of independence’’ by RC Majumdar.

• “A soldier-peasant struggle against foreign and feudal bondage” by Marxist Historian.

Some Important Books related to the Revolt of 1857: