Economic policies and their impact MCQ Quiz - Objective Question with Answer for Economic policies and their impact - Download Free PDF

The correct answer More than one.

Key Points

The Permanent Settlement:

• Lord Cornwallis under directions from the then British PM, William Pitt, proposed the Permanent Settlement system in 1786. This came into effect in 1793, by the Permanent Settlement Act of 1793.

Ryotwari Settlement System

• Ryotwari Settlement System was introduced by Thomas Munro.
• He was appointed as the Governor of Madras in May 1820.
• The Ryotwari system was extended to the Bombay area.

Mahalwari System

• In the North-Western Provinces of the Bengal Presidency (most of this area is now in Uttar Pradesh), an Englishman called Holt Mackenzie devised the new system which came into effect in 1822.
• Under his directions, collectors went from village to village, inspecting the land, measuring the fields, and recording the customs and rights of different groups.

The correct answer is option 3.

Key Points

Permanent Settlement:

• According to the Permanent Land revenue settlement the Zamindars were recognized as the permanent owners of the land. Hence, option 3 is not correct.
• They were given instruction to pay 89% of the annual revenue to the state and were permitted to enjoy 11% of the revenue as their share.
• The Zamindars were left independent in the internal affairs of their respective districts.
• The zamindari system was introduced by Lord Cornwallis in 1793 through Permanent Settlement that fixed the land rights of the members in perpetuity without any provision for fixed rent or occupancy rights for actual cultivators.
• Under the Zamindari system, the land revenue was collected from the farmers by the intermediaries known as Zamindars. Hence, option 1 is correct.
• The share of the government in the total land revenue collected by the zamindars was kept at 10/11th, and the remainder went to zamindars.
• The system was most prevalent in West Bengal, Bihar, Odisha, UP, Andhra Pradesh, and Madhya Pradesh. Hence, option 2 is correct.
• The condition of the actual cultivators of the land declined under Permanent Settlement. Hence, option 4 is correct.
  • ​The Zamindars were generally favourable to the British administration and supported the British even during the freedom struggle.
  • The land assessment was not done properly and land revenue was fixed arbitrarily.
  • The revenue rates were so high that many Zamindars became defaulters.

The Correct answer is Ryotwari.

Key Points

• The Ryotwari System was a land revenue system introduced in parts of British India.
• Under this system, the ownership rights of land were held by the peasants, who were responsible for direct payment of land revenue to the government.
• This system was mainly implemented in the Bombay Deccan and also in Madras and Assam.
• It was introduced by Thomas Munro in 1820.
• The system aimed to eliminate the role of middlemen like Zamindars and allowed direct contact between the government and the peasants.
• The revenue rates were periodically reviewed and adjusted based on the productivity of the land.

 Additional Information

• Zamindari
  • The Zamindari System involved landlords (Zamindars) who collected revenue from the peasants and paid a fixed sum to the government.
  • This system was prevalent in regions like Bengal, Bihar, and Odisha.
  • The Zamindars were hereditary and enjoyed significant power and privileges.
• Mahalwari
  • The Mahalwari System was introduced in the North-Western Provinces, Punjab, and parts of Central India.
  • In this system, the revenue settlement was made with the village or estate (Mahal), and the head of the village was responsible for revenue collection.
  • This system combined elements of both the Zamindari and Ryotwari systems.

The correct answer is: 'Thomas Munro'

Key Points

• Thomas Munro was the propagator of the Ryotwari land settlement system.
  • This statement is correct.
  • Thomas Munro, who served as the Governor of Madras from 1820 to 1827, is credited with the implementation of the Ryotwari system in the Madras Presidency, which was later extended to other parts of India.
  • The Ryotwari system was introduced as an alternative to the Zamindari system, aiming to directly settle land revenue with the cultivators (ryots) instead of landlords (zamindars).
  • Under this system, the cultivators were recognized as the owners of the land, and they paid taxes directly to the government.

Incorrect Options

• Sir John Malcom
  • Sir John Malcom was a British soldier, statesman, and historian, known for his work in Persia and India.
  • He was not directly involved in the propagation of the Ryotwari system.
• Eric Stokes
  • Eric Stokes was a British historian known for his work on the economic history of India.
  • While he studied the Ryotwari system, he was not involved in its propagation.
• James Mill
  • James Mill was a Scottish historian, economist, and philosopher known for his work "The History of British India".
  • He was not directly involved in the implementation of the Ryotwari system.

Hence, the correct answer is Thomas Munro.

Additional Information

• Ryotwari System:
  • The Ryotwari system was introduced by the British in parts of Southern and Western India. It was aimed at creating a direct relationship between the government and the peasants.
  • The system allowed for individual ownership of land, where each ryot was responsible for paying land revenue directly to the government.
  • This system was seen as a way to increase agricultural productivity and ensure a stable source of revenue for the British administration.
• Zamindari System:
  • The Zamindari system, in contrast, involved revenue collection through intermediaries known as zamindars, who collected taxes from the peasants on behalf of the government.
  • This system was prevalent in Bengal, Bihar, and parts of Northern India and often led to exploitation of the peasants by the zamindars.

The correct answer is Fort William.

Key Points

• Fort William was built following the aftermath of the British East India Company’s victory at the Battle of Plassey, Fort William faces the Ganga River and is an immutable part of Kolkata’s identity
• The original Fort William was actually completed way before the legendary battle in 1696, with its guard room getting used at one point as the infamous Black Hole of Calcutta.
• After the Battle of Plassey, Major-General Clive rebuilt the fort. Today’s Fort William, as we all know it, is an army-maintained property that serves as the headquarters of the army’s eastern command.

Additional Information

• Fort St. George:
  • It was established in 1639-1640 CE, Fort St. George is seen because of the first English fortress in India.
  • The fort is the administrative headquarters of Tamil Nadu’s legislative assembly and a base for military troops in transit to several areas of Southern India.
• Fort St. David:
  • Fort St. David was a British fort near the town of Cuddalore, 100 miles south of Madras on the Coromandel Coast of India.
  • It was bought from the Marathas by the British East India Company in 1690. Clive served as the governor of Fort St David in 1756.

The correct answer is Town Planning.

​Key Points​

• Town Planning Under East India Company :
  • After Wellesley’s departure, the work of town planning was carried on by the Lottery Committee (1817) with the help of the government.
  • The Lottery Committee was so named because funds for town improvement were raised through public lotteries.
  • In the early decades of the nineteenth century raising funds for the city was still thought to be the responsibility of public-minded citizens and not exclusively that of the government.
  • The Lottery Committee commissioned a new map of the city so as to get a comprehensive picture of Calcutta.
  • Among the Committee’s major activities was road building in the Indian part of the city and clearing the riverbank of “encroachments”.
  • In its drive to make the Indian areas of Calcutta cleaner, the committee removed many huts and displaced the labouring poor, who were now pushed to the outskirts of Calcutta.

The correct answer is Bengal.

• The Charter Act of 1833 made the Governor-General of Bengal as the Governor-General of India and vested in him all civil and military powers.

Key Points

• The Charter Act of 1833:
  • The Governor-General and his Council were given vast powers.
  • The Council got full powers regarding revenue, and a single budget for the country was prepared by the Governor-General.
  • For the first time, the Governor-General’s Government was known as the ‘Government of India’ and his Council as the ‘Indian Council’.
  • The Governor-General of Bengal was to be the Governor-General of India.
  • All powers, administrative and financial, were handed over to Governor-General in Council.
  • A Law Commission under Lord Macaulay was constituted for the codification of laws.

The correct answer is Madras and Bombay.Key Points

• The Ryotwari Settlement was introduced in Madras and Bombay provinces during the British rule in India.
• Under this system, cultivators or farmers had to pay annual taxes directly to the government, unlike the Zamindari system where they paid taxes to intermediaries or landlords.
• The Ryotwari system was considered more beneficial for small and marginal farmers as they had direct access to the government and could negotiate the amount of taxes based on their produce and income.
• The system also helped in increasing agricultural productivity and revenue for the government.
• However, the system was criticized for being exploitative towards farmers in some cases, especially during famines and crop failures.

Additional Information

• The Central province was mainly governed under the Zamindari system, where intermediaries collected taxes from farmers and paid a fixed amount to the government.
• Assam and Bengal provinces had a mix of Zamindari and Mahalwari systems, where taxes were collected either by intermediaries or directly from farmers through village-level committees.
• Punjab province had a predominantly Mahalwari system, where large landlords or Zamindars collected taxes from farmers and paid a fixed amount to the government.

The correct answer is Mahalwari system.

Key Points

• In India, the Mahalwari system is utilised to safeguard local autonomy.
• Holt Mackenzie was the first to introduce it in 1822. Mahal, which means house, district, neighbourhood, or sector in Hindi, is the source of the name "Mahalwari."
• Landlords or Nambardars were designated to represent villages or groups of villages in Mahalwari.
• The landlords were jointly responsible for the payment of taxes to the village communities. In sections of Uttar Pradesh, the North-Western province, Central India, and Punjab, this system was dominant.
• Holt Mackenzie was a British colonial administrator in India.
• In July 1807, he was hired as an East India Company writer and advanced quickly through the ranks until he retired to England in 1831.
• He was influential in the establishment of the Mahalwari system of land revenue in India.

Important Points

• The Ryotwari system, instituted by Thomas Munro in British India, allowed the government to deal directly with the cultivator ('ryot') for revenue collection and granted peasants the freedom to relinquish or purchase more land for cultivation.
• Under his Permanent Settlement Act, Lord Cornwallis, who was governor-general of India from 1786 to 1793, instituted the Zamindari System.
• The East India Company, led by Governor-General Lord Cornwallis, implemented the Permanent Settlement of Bengal in 1793.

The correct answer is Option 4. 

Key Points

• The first English factory in Bengal was set up on the banks of the river "Hugli" in 1651.
• The factory was established by the East India Company and was located in the village of Hooghly, which was then a part of the Bengal Subah of the Mughal Empire.
• The factory was initially used as a trading post for the Company's goods, particularly textiles and spices.
• Over time, the English established more factories in the region, including in Calcutta (now Kolkata), which became the Company's headquarters in Bengal.
• The establishment of these factories was a crucial step in the East India Company's expansion in India and its eventual domination of the Indian subcontinent.

Additional Information

•  The East India Company was a British joint-stock company that was formed in 1600 for the purpose of trading with India and Southeast Asia.
• The Company had a monopoly on English trade with these regions and was granted extensive privileges and powers by the British Crown, including the right to establish its own army and navy, negotiate treaties with local rulers, and administer justice in its own territories.
• Over time, the Company became increasingly involved in Indian politics and began to exert its influence over local rulers and territories.
• The Company's domination of Indian trade and its political power eventually led to the colonization of India by the British Empire.
• The Company's rule in India came to an end in 1858, when the British Crown assumed direct control over India following the Indian Rebellion of 1857.

The correct answer is Option 3.

Key Points

• Ryotwari system of land revenue:
  • Implemented by: Thomas Munro, Governor of Madras.
  • Year: 1820.
  • Areas under the system: Madras, Bombay, Assam and Coorg provinces.
  • Tax to be paid by: Farmers directly to the government.
  • Peasants or cultivators were regarded as the owners of the land. They had ownership rights of the land.
  • Tax rates:-  50% in dryland and 60% in the wetland.
  • Taxes had to be paid in form of cash which caused the rise of moneylenders and increased exploitation of peasants and cultivators.

The correct answer is 'Zamindari System'.

Key Points

• Lord Cornwallis introduced the Zamindari System under his Permanent Settlement Act.
• Zamindari System is a system of land tenure in which land rights of intermediaries were confirmed through permanent settlement in 1793 by Lord Cornwallis.
• The three major components of the Zamindari System were – British, Zamindar (Landlord), and peasants. 
• The system recognized the zamindars as landowners who then let out their lands to tenant farmers in return of a share of the produce.
• The zamindar, in turn, had to pay a fixed sum to the British Government.
• This led to a lot of exploitation of the peasants.

Hence, the correct answer is Zamindari System.

Important Points

Let's have a look at other options:

The correct answer is English; French.

• The First Carnatic War was fought between the English and the French.

Key Points

• Though the British and the French came to India for trading purposes, they were ultimately drawn into the politics of India.
• Both had visions for establishing political power over the region.
• The Anglo-French rivalry in India reflected the traditional rivalry of England and France throughout their histories.
• Specifically, in India, the rivalry, in the form of three Carnatic wars decided once for all the English and not French was the more suitable ones to establish their rule all over India. 
• First Carnatic War (1740-48)
  • The First Carnatic War was the Indian theatre of the War of the Austrian Succession and the first of a series of Carnatic Wars that established early British dominance on the east coast of the Indian subcontinent.
  • Carnatic was the name given by the Europeans to the Coromandel coast and its hinterland.
  • The First Carnatic War was an extension of the Anglo-French War in Europe which was caused by the Austrian War of Succession.
  • The First Carnatic War is remembered for the Battle of St. Thome (in Madras) fought between the French forces and the forces of Anwar-ud-din, the Nawab of Carnatic, to whom the English appealed for help.
• The First Carnatic War ended in 1748 when the Treaty of Aix-La Chapelle was signed bringing the Austrian War of Succession to a conclusion.

Additional Information

• Conclusion
  • The victory at Wandiwash left the English East India Company with no European rival in India.
  • Thus they were ready to take over the rule of the entire Country.
  • Significantly, in the Battle of Wandiwash, natives served in both armies as sepoys.
  • It makes one think that irrespective of which side won, there was an inevitability about the fall of India to European invaders.

The correct answer is Independent economy.

Key Points

• Independent economy was a major feature of Indian economy before British rule.
• Indian economy was independent and self-sufficient before British rule, consisting of various types of agriculture, handicrafts, and trade.
• India was a major exporter of various textiles, spices, and other products, making it a strong and prosperous economy.
• Local cottage industries and handicraft industries were the backbone of the Indian economy, providing employment in rural and urban areas.
• With the advent of British rule, the structure of the Indian economy underwent significant changes, making it dependent and vulnerable.

Additional Information

• During British rule, the Indian economy was exploited and restructured to suit British economic interests.
• Many local industries and handicrafts were destroyed or weakened, leading to increased poverty and unemployment.
• Indian economy became overly dependent on agriculture, and farmers were forced to cultivate cash crops, leading to food crisis.
• During this period, the development of manufacturing and industry in the Indian economy was hampered, and the overall economic condition of the country weakened.

The correct answer is option 3.

Key Points

• Formation of the British trading centers
  • Surat (1613 )
  • Madras (1639)
  • Bombay (1668)
  • Calcutta (1686)

Additional Information

• Surat British Trading Center - Captain Thomas Best  and his crew's exploits in the naval Battle of Swally (a corruption of suvali) on October 28, 1612, impressed the Mughal governor of the province so much that's he got them a treaty ratified by the Jahangir which gave them trading rights. 
• By January 1613, the first East India Company Factory had come up at Surat