NCERT Solutions for Class 8 History Chapter 3 Ruling the Countryside (ग्रामीण क्षेत्र पर शासन चलाना) Part – 1 to Study online or download in PDF form free along with NCERT Solutions for other subjects also.
NCERT Solutions for Class 8 History Chapter 3
Go back to 8 Social Science Main page
Ruling the Countryside: Question Answers
8 History Chapter 3 Ruling the Countryside Solutions
Main Points on Chapter 3
The Company Becomes the Diwan
- On 12 August 1765, the Mughal emperor appointed the East India Company as the Diwan of Bengal. The actual event most probably took place in Robert Clive’s tent, with a few Englishmen and Indians as witnesses. The grant of Diwani was an event in British imagination.
- As Diwan, the Company became the chief financial administrator of the territory under its control. Now it had to think of administering the land and organising its revenue resources. A trading company had also to ensure that it could buy the products it needed and sell what it wanted.
Revenue for the Company
The Company had become the Diwan, but it still saw itself primarily as a trader. The effort was to increase the revenue as much as it could and buy fine cotton and silk cloth as cheaply as possible. Before 1865, the Company had purchased goods in India by importing gold and silver from Britain. Now the revenue collected in Bengal could finance the purchase of goods for export. Soon it was clear that the Bengal economy was facing a deep crisis. Peasants were unable to pay the dues that were being demanded from them. Artisanal production was in decline and agricultural cultivation showed signs of collapse. Then in 1770 a terrible famine killed ten million people in Bengal.
The need to improve agriculture
Most Company officials began to feel that investment in land had to be encouraged and agriculture had to be improved. After two decades of debate on the question, the Company finally introduced the Permanent Settlement in 1793. By the terms of the settlement, the rajas and taluqdars were recognised as zamindars. They were asked to collect rent from the peasants and pay revenue to the Company. It was felt that this would ensure a regular flow of revenue into the Company’s coffers and at the same time encourage the zamindars to invest in improving the land. Since the revenue demand of the state would not be increased, the zamindar would benefit from increased production from the land.