Question

Q. The permanent settlement in Bengal was aimed at achieving following objectives

Which of the statements given above is /are correct?

• A.
  1 only
• B.
  1 and 3 only
• C.
  2 and 3 only
• D.
  1, 2, and 3

Answer 1

The correct option is D

1, 2, and 3
Explanation:

The permanent settlement was introduced in 1793 by Charles Cornwallis (1738-1805) in Bengal. British officials hoped to solve the problems they had faced since the conquest of Bengal by introducing a permanent settlement.In the 1770s, the rural economy in Bengal was in turmoil, with frequent famines and declining agricultural production. Officials felt that agriculture, trade and state revenue resources could all be developed by encouraging investment in agriculture. This could be done by securing property rights and fixing the rate of revenue demand on a permanent basis.
If the State's demand for revenue was permanently fixed, the Company would be able to look forward to a regular flow of revenue, while entrepreneurs could feel confident that they would make a profit from their investment, as the State would not stifle it by increasing its claims. The process, officials hoped, would lead to the emergence of a class of yeomen farmers and rich landowners who would have capital and business to improve agriculture. Nurtured by the British, this class would also have been loyal to the Company.