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Question
Explain the economic impact of Company Rule in India.?
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Solution
Instructions: To answer this question, we need to explain the following changes:
- Exploitation through dual system
- Indian indigenous industries were ruined
- Aggressive revenue collection
- Introduction of railways in India
- Exploitation of raw material and markets
Solution: The major impact of Company rule on India is best understood from the following points:
- Dual system: Dwimukhi Shasan' or the dual system was introduced in Bengal by the East India Company. This system gave the right to collect revenue to the British. Therefore, EIC got the power without any responsibilities. The Nawab was responsible for the welfare of the people but without adequate funds to use.
- Indian indigenous industries were ruined: Dual system ruined the economic prosperity of Bengal's cottage industries.
- Exploitation of raw material: Raw material from the region got shipped off to England and Indian markets got flooded with cheap English made goods.
- High taxes: The British introduced high taxes on Indian made goods, leading to a fall in demand. Indian artisans became poor and unemployed, while weavers were forced to produce cloth in a definite time frame or else, they faced punishment.
- British introduced the railways: British introduced the railways in India under the governance of Lord Dalhousie. The first train ran between Bombay to Thane and steamer service between India and England, facilitating faster transport. Mumbai, Madras and Calcutta were developed as important port centers.
- Exploitation through dual system
- Indian indigenous industries were ruined
- Aggressive revenue collection
- Introduction of railways in India
- Exploitation of raw material and markets
- Dual system: Dwimukhi Shasan' or the dual system was introduced in Bengal by the East India Company. This system gave the right to collect revenue to the British. Therefore, EIC got the power without any responsibilities. The Nawab was responsible for the welfare of the people but without adequate funds to use.
- Indian indigenous industries were ruined: Dual system ruined the economic prosperity of Bengal's cottage industries.
- Exploitation of raw material: Raw material from the region got shipped off to England and Indian markets got flooded with cheap English made goods.
- High taxes: The British introduced high taxes on Indian made goods, leading to a fall in demand. Indian artisans became poor and unemployed, while weavers were forced to produce cloth in a definite time frame or else, they faced punishment.
- British introduced the railways: British introduced the railways in India under the governance of Lord Dalhousie. The first train ran between Bombay to Thane and steamer service between India and England, facilitating faster transport. Mumbai, Madras and Calcutta were developed as important port centers.
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