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HBSE Class 8 History Chapter 8 Company’s Exploitative Policies and Their Opposition notes for Haryana Board of Our Bharat III Book Solution.
Company’s Exploitative Policies and Their Opposition Class 8 History Chapter 8 Notes
Lets know
- India’s Situation
- The Advent of the British East India Company in India
- The trade policy of the English
- The exploitative economic policies of the English
- Opposition to exploitative policies of the English
Till the 18th century, India was known as a rich and prosperous country in the world. The high quality of cotton and silk cloth, indigo, sugar, spices, medicines and precious gems were enough to make any nation attracted to India. Every foreign country was eager to establish its dominion over India through trade. For this purpose, many companies came to our country from Europe, like Portuguese, Dutch, English, Danish and French. During the arrival of the company of these European countries India was politically weak and divided into many regional states. The existence of the central authority of the Mughals was a mere nominal. During this transition period, European companies started taking interest in the chaotic politics of India and mutual conflicts. The British were victorious in these conflicts. They started trade in India by establishing the “East India Company” in 1600 AD. In the beginning, gold and silver came to India from the company’s trade and the prosperity of India continued to increase. But after the victory in the Battle of Plassey in 1757 AD, the trading company was converted into political power, after which the company adopted such exploitative policies like trade, land revenue and drain of wealth in India, due to which India became prosperous. Within a few years, India became a pathetic and poor country.
Character of the British Raj: Sunderlal, in his book “British Raj in India”, giving the example of a European scholar, writes about the manner in which British rule was established, ‘An Indian saint compared the inhabitants of Europe inside his country with termites. Initially, the work of termites either starts underground in the dark or at least they are not visible, but these termites have a definite goal and they remain silent and unknown until they accomplish that goal. By eating the green trees of the forest inside, they erect their buildings in their hollow trunks. They make many secret routes to reach those buildings from nearby and distant hard-mud structures. These termites attack everything. devour everything, dig up the roots inside, hollow them out and destroy everything’.
Company’s Exploitative Economic Policies
Trade policies: Since ancient times, India’s prosperity was famous all over the world and goods made in India were in demand in every corner of the world. The spices, garments, linen of India were sold in the world. The company initially made a lot of profit by selling Indian goods abroad and also increased the prosperity of India but gradually the conditions started changing and their trade policy was changed. The exploitative business policies of the company can be studied as follows :
Trade Policy of the Company till 1757 AD: Till 1757 AD, the British East India Company was a trading company. Its main objective was to control trade between India and the countries of the west and to earn a maximum profit from it. The company bought cotton textiles, silk fabrics, spices, muslin, precious stones, opium, brocade, etc. from India and sold them to England and other European countries and in return, brought precious metals like gold and silver to India. Thus, India’s exports were continuously increasing, which increased India’s prosperity.
The Company’s trade policy during 1757-1813 AD: Until 1757 AD, the company’s trade was in favour of India. After the Battle of Plassey, the company’s commercial power changed into political power, which resulted in changes in its commercial policies. After the Battle of Buxar in 1764 AD, company got the civil right of Bengal, Bihar and Orissa (right to collect revenue). The British implemented their own land system, the land was supposed to be personal property and the new tax policy ruined the Indian artisans. Now the company, using its political power, started buying goods from Indian artisans at the desired price and also got a business monopoly. It also started using the money received from Bengal, Bihar and Odisha to buy Indian goods. Due to this, the situation of Indian artisans started deteriorating, while the Indian traders also had to suffer losses and the drain of wealth from India also began.
The Company’s trade policies from 1813 AD to 1857 AD: The government of England gradually tried to reduce the demand for Indian goods by imposing a heavy customs duty on the import of Indian goods, because the Industrial Revolution had taken place in England and the goods were being manufactured by machines, which were cheaper as well as higher in quantity. The government of England came under pressure from the industrialists of England, and according to the Charter Act of 1813 AD, they began to follow the independent trade policy by ending the company’s business monopoly and giving the businessmen of England the freedom to trade with India. Now, the British traders started buying raw materials like cotton, silk, etc. from India, and started the manufacture of silk, cotton, and woollen cloth in their factories and selling it in India. By expanding the means of transport and communication, the finished goods reached the hinterland of India. India has now become an exporter of raw materials and an importer of finished goods.
Land Revenue Policies: In agricultural countries, land is a major source of income for the people. India was also an agricultural country. Most of its population depended on agriculture. A part of agriculture had to be given to the government or king in the form of revenue or rent by the farmer. This part was called Land Revenue, Bhumikar or Lagaan. In 1765 AD, Lord Clive acquired the Diwani (the right to collect land tax) of Bengal, Bihar and Odisha from the Mughal emperor and the British made major changes to the land revenue system. Its aim was to get more and more land revenue and to export raw materials from India. The officers of the East India Company were aware that the main part of the total revenue in india was land revenue. The company mainly introduced three systems-Permanent Settlement, Raiyatwari Settlement, and Mahalwari Settlement-to get maximum land revenue. At that time, the company did not have uniformity in the nature of the land system, assessment and tax collection in India. Therefore, it was difficult to understand the nature of the British land system. Halt Mackenzie says about the land-revenue system of the British that ‘they studied the land-revenue system throughout their life, but they had no knowledge at all’. Their land-revenue systems were as follows:
a) Permanent Settlement: Lord Cornwallis, a zamindar of England came to India in 1786 AD as the Governor-General of the company. He made a ten-year settlement in 1790 AD after consulting his associates to accept the landlord as the owner of the land. This settlement was declared a permanent settlement in 1793 AD. It was implemented in Bengal, Bihar, Odisha and some parts of the United Provinces, totalling 19 percent of British India. The goods were taken from the landlords. The land tax was set to double in 1765 AD, which was higher. In the land revenue, 9/10 shares went to the company and 1/10 share was held by the landlord. The company benefited greatly from this settlement. He got the loyal landlord class. Income was fixed, but Indian farmers suffered great losses. The amount of tax was very high. The landlords had to deposit a certain amount within a fixed time (which was called the rule of sunset), failing which, the ownership of the land was taken away. As a result, the landlord class came into existence, which led to the degradation of agriculture and the maximum exploitation of farmers.
b) Raiyatwari system: The system of land tax introduced by the Madras Presidency in 1820 AD by Sir Thomas Munro is called the Raiyatwari system. Soon after Madras, it was implemented in about fifty-one percent of British India, like Bombay, Assam, Sindh, Berar, Andaman and Nicobar etc. It is called the Raiyatwari system because in this settlement, the agreement was made directly with the Raiyats, i.e., farmers and not with the landlords. There were no landlords with large lands in South India anymore. Under this system, the amount of tax was fixed at forty to fifty-five percent. However, this was not fixed permanently. It could be rescheduled after twenty to thirty years. The land of farmers who could not pay land tax could be auctioned. The employees of the company who imposed the tax exploited the farmers a lot. The amount of tax was very high. Farmers in less fertile areas of the south were unable to pay this tax, which soon resulted in their land being auctioned. Farmers were caught in the clutches of moneylenders. They fell victim to hunger and death due to a terrible famine.
Raiyat: The farmer is called Raiyat. So, the settlement with the farmers made by the British is called Raiyatwari.
c) The Mahalwari system: The third important land-tax system was the Mahalwari system. This system was implemented in some parts of North Western Province, Central Province and Punjab, i.e., about thirty per cent of British India. This settlement was called Mahalwari as this arrangement was done collectively with “Mahal”, i.e., the entire village. It was also called the “system according to the village”. In this system, the company did not compromise with the landlord or farmer but collectively compromised with the entire village. In this system, the entire village or their representative was responsible for paying the land tax fixed for that mahal or village. The agreement was signed on behalf of the village by the head, or Numberdar. At the beginning of this system, 2/3 of the produce was fixed as land tax, though later it was reduced to 1/2. The entire village was considered the owner of the land. The amount of tax was high, which worsened the situation of the farmers. This arrangement was fixed for thirty years and, in some parts, for twenty years.
d) A Drain of wealth: In the British East India Company and directly under British rule, a large part of India’s wealth went to Britain, in return of which India did not receive anything. This loot is called an economic drain or a drain of wealth. Economic drain was a major feature of British rule in India. The foreigners who came to India before the British settled here permanently and spent the wealth received from land tax and other taxes here, but the British rule established by the company was always foreign and exploited India continuously from 1757 AD to 1947 AD. This theory of economic policy was scientifically interpreted by the nationalist leader Dadabhai Naoroji in his book “Poverty and Un- British Rule in India” (1876 AD), and it was considered to be the main reason for India’s impoverishment. This wealth continued to benefit England, and India did not receive anything in return for all these expenses. As a result, India continued to be impoverished while England became a prosperous and developed country. On the issue of the drain of wealth, the British officer, John Sullivan, assumed that “our system worked as a sponge that absorbed each of the good things from the banks of the Ganga and squeezed them at the bank of the Thames”.
Impact of Company’s Exploitative Policies
The company’s economic policies were in fact exploitative. The main objectives of the commercial and land revenue policies were to exploit the resources of India as much as possible and to drain money from India to England. These policies had the following effects on India and England:
Decline of handicrafts industries: Before the rule of the company, the handicrafts industries of India were in a developed state and the finished goods from these industries were sold throughout the world. Dhaka’s muslin saree was in great demand throughout the world, but the company’s exploitative economic policies destroyed the Indian handicrafts industry. The British imposed heavy taxes in England on the goods made in India and reduced the prices of their goods in India for their profit. After taking the Indian native states, the British destroyed Indian industry and handicrafts by imposing import-export, octroi and other taxes. Hence, the exploitation of India was caused by the Indian capital.
Industrialization: In the 18th and 19th centuries, agricultural and industrial revolutions took place in all the major countries of the world and modern industries developed in all countries, but the British Government of India neither patronised Indian goods nor provided facilities to Indian traders. Apart from this, the traditional self-reliant economy of India also gradually led to the decline. India ceased to be an importing country for England. Indian markets were gradually filled with foreign goods. The industries came to a standstill. Thus, the main objective of the government was to protect the merchants and industrialists of Britain instead of India, which led to the de-industrialization of India.
Poverty of India: The exploitative economic policies of the British resulted in the maximum exploitation of India and a large part of the wealth went to England from India, with nothing received in return. With this economic exploitation or drain of wealth, India continued to become poor. At present, colonial exploitation is the main reason behind India’s plight and poverty.
Development of England: The industrial revolution came to England due to the drain of wealth from India. The export of raw materials from India to England and the finished goods of England added to the prosperity of England. Large profits were made by purchasing raw materials from India at cheaper rates. The fabric, utensils, iron and glass industries and the craftsmen working in them were ruined.
Loss to Indian business: India’s trade was in an advanced stage before the rule of the company and this trade was controlled by Indian businessmen. After the establishment of the rule of the company, the British imposed restrictions on Indian trade and merchants and started favouring British businessmen. This caused economic losses and Indian businessmen were ruined. Along with this, Indian trade also began to suffer and the balance of trade, which was earlier in favour of India, also became skewed.
Backwardness of Agriculture: The company adopted exploitative land revenue policies in India, which led to a decline in agricultural production. Landlords lived in the cities. They had no interest in agricultural reform. The farmers did not take an interest in increasing agricultural production because they knew that a large part of the production would go to the company and the zamindar, resulting in stagnation and backward- ness in agriculture.
Poverty of peasants: Due to British land revenue policies, the condition of farm- ers started deteriorating. The amount of land revenue was so high that farmers got trapped in the clutches of money- lenders and usurpers. Farmers became victims of indebtedness. On the other hand, during times of famine and flood, the company used to collect taxes harshly, which made the situation of the farmers pathetic. Most farmers sold their land and became agricultural labourers.
Development of Railways and Roads for Colonial Needs: The company’s exploitative economic policies resulted in the development of modern means of transport such as railways and roads in India. Railways and roads were developed by the British for their colonial economic and administrative needs. The Sher Shah Suri Road from Delhi to Calcutta was paved. It was named the Grand Trunk Road. Many major cities were connected by roads and the Public Works Department (PWD) was established. Similarly, in 1853 AD, the first railway line was laid between Bombay and Thane. Soon, the major economic and strategic areas were linked by rail. Roads and railways were developed so that raw materials from the interior parts of India could be easily transported to the ports and then the finished goods could be transported from these ports back to the interior parts of India.
Do You Know? The purpose of the railway system started by Lord Dalhousie in India was intended to carry valuable goods from the interior of India to the sea coast and then to London.
Resistance to the Exploitative Policies of the Company
The exploitative policies of the company between 1757 AD and 1857 AD ruined the peasants, craftsmen and Indian businessmen and also bankrupted the native rulers, due to which all these classes started opposing the company’s rule. During 1757-1857 AD, there would hardly have been a year in which there was no rebellion against the rule of the company, and in 1857 AD, all sections of Indian society together waged a freedom struggle against the British that moved the roots of the British government.
Peasants’ Revolt: The British East India Company adopted exploitative land revenue policies to increase their income and imposed a heavy land tax. Various types of atrocities were inflicted on the farmers for raising this tax, which led to rebellions by farmers in different parts of India. There was the Sannyasi revolt in Bengal, the Chuar revolt, the Rangpur revolt, the Ganjam revolt in Odisha, the Jat revolt in Haryana, the Koli revolt of Gujarat, the Ramosi revolt of Maharashtra, the Pagal Panthi revolt of Mysore and Garo etc. The cause of all these revolts was the tyrannical, exploitative policies of the company. The British were successful in suppressing these rebellions with their modern resources, but the flame was burning in the minds of the farmers and artisans, which could erupt at any time.
Resistance of Tribals : Due to the exploitative policies of the British, dissatisfaction among Tribals started to build up. The British officers and the company’s loyal landlords constantly exploited the tribal people and their forests. The tribals were also dissatisfied with the land revenue policies of the company. The atrocities of the company’s employees and local landlords filled the slot. The tribals became so upset that they had no other way but to take up arms. There was resistance to British rule in various parts of India. The tribals in Bengal raised the flag of protest between 1788 AD and 1790 AD. In the same way, Kol, Khami, Khond, Bhil, etc. revolted with their traditional weapons against the British army equipped with modern weapons. The most fierce revolt was led by the Santhals of Chota Nagpur in 1855-1856 AD under the Sindhu and Kanhas. This revolt was so fierce that it took eight months for the British to suppress it. The revolts of the tribals arose as a result of the intervention of the English Company in their independence and the exploitative policies of the company. Although the British oppressed them harshly, the flame of freedom kept burning inside them.
Resistance of Artisans and Craftsmen : The British East India Company, after gaining power, adopted exploitative trade policies and initially bought goods from Indian artisans and workers at the desired price, which caused the artisans to suffer economic losses. Subsequently, the company imposed a maximum limit on the finished goods by Indian craftsmen, artisans, and weavers and made their prices very expensive abroad, which reduced the demand for these goods. On the other hand, there was a nominal tax on goods coming from Britain into India. By providing these goods to us at a very cheap price, the demand for the goods manufactured by the Indian craftsmen in the domestic markets was reduced, which led to the artisans and craftsmen becoming paupers. Now they have become hopeless and have started taking part in various revolts. Between 1770 AD and 1805 AD, weavers, silk artisans and salt manufacturers fought against the British Company. This struggle was sometimes supported by other sections of Indian society.
Resistance of Landlords and Rulers : Not only were the farmers, tribals and artisans dissatisfied with the exploitative policies of the company, but the land revenue and business policies of the British were equally opposed by the landlords and the native kings. The British controlled that power for the purpose of exploiting India. The company took away the independence of the Indian local rulers. It got control of the economy of the local rulers by obtaining the Diwani right, which led to increasing dissatisfaction among the native rulers. On the other hand, due to land revenue policies, new landlords were given land contracts, which angered the old landlords. These landlords played a bugle of revolt against the company by organising farmers and artisans. Medinipur (1766-1767 AD), Dhulabhoomi (1766-1767 AD), Visakhapatnam (1794 AD), Paiassi Raja (1796-1805 AD), Wazir Ali (1799 AD), conflict of Ganjam (1800-1805 AD), conflict of the Cheras (1800 AD), Nayak Revolt of Bagdi (1806-1816 AD), Bundelkhand and Baghelkhand Revolts (1808-1812 AD), revolt of Hathras (1817 AD) etc. were some of the revolts and conflicts in which the landlords and the local rulers raised their voice against the exploitation of their princely states and jagirs.
The Great Freedom Struggle of 1857 AD: As a result of the exploitation of the British East India Company, restlessness and dissatisfaction were brewing in every section of Indian society. This dissatisfaction culminated in the freedom struggle of 1857 AD, when the trumpet of independence against the company in every part of India was blown. All sections of the society including the kings, subjects, businessmen, workers, peasants, landlords, women and men, Hindus and Muslims tried to put an end to the exploitative rule. Although the British succeeded in suppressing it with their modern resources, the national sentiment generated by the Indians plagued the British. Ultimately, this sentiment succeeded in giving India independence.
Thus, while the British made the country economically backward and ruined, they also kept the political powers in their hands. Whatever the British policy was, it was purely for the benefit of the British. An economically prosperous nation was squeezed in such a way that it became a cage of bone; that is, the country was hollowed out in every respect. Due to the continuous exploitation, Indians started protesting and this protest gradually became public anger.
Conclusion of the Chapter
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India was called the “golden bird” because of its wealth, prosperity and self- reliance.
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The first European to reach India by sea was Vasco-da-Gama, who reached Calicut in 1498 AD.
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The Battle of Plassey and the Battle of Buxar were fought in the year 1757 AD and 1764 AD, respectively.
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The policy Lapse of Lord Dalhousie led to the political expansion of the British in India.
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From 1765 AD to 1947 AD, the British continuously expanded economically and politically in India.
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In India, the 18th century is also called the period of renaissance.
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The land settlement implemented in India became the gate of hell for the Indians.
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Indians became helpless due to the exploitation of Indian resources.