The Indian Council Act 1861 made changes in the Governor General’s council for executive and legislative purposes. The Act was introduced by Lord Canning. It empowered the Governor General to delegate special tasks to individuals of the Executive council. Each member had their own portfolio and dealt with it. This was the first instance of a portfolio system in India.

The correct answer is option 'B', the Indian Councils Act of 1861 introduced the 'Portfolio system of governance' in British India.

1. Introduction:
The 'Portfolio system of governance' refers to the practice of assigning specific departments or portfolios to individual members of the executive council. This system was first introduced in British India as a means to delegate administrative responsibilities and share the workload of the Governor-General.

2. Indian Councils Act of 1861:
The Indian Councils Act of 1861, also known as the Morley-Minto Reforms, was a significant piece of legislation that aimed to introduce limited representative government in India. This act expanded the legislative councils and allowed for the inclusion of non-official members.

3. Introduction of the Portfolio System:
Under the Indian Councils Act of 1861, the Governor-General was authorized to appoint members to the executive council who would be responsible for specific departments. This marked the introduction of the 'Portfolio system of governance' in British India.

4. Roles and Responsibilities:
Each member of the executive council was assigned a portfolio that aligned with their expertise or experience. The portfolios included departments like finance, home affairs, education, public works, etc. The members were responsible for the administration and decision-making in their respective departments.

5. Benefits of the Portfolio System:
The introduction of the Portfolio system had several benefits. It allowed for specialization and focused attention on specific areas of administration. It also helped in sharing the workload of the Governor-General and improving the efficiency of governance. Additionally, it provided an opportunity for non-official members to contribute to the decision-making process.

6. Further Reforms:
The Indian Councils Act of 1861 was followed by subsequent acts that further expanded the scope of the portfolio system. The Indian Councils Act of 1892 and the Government of India Act of 1909 brought in additional reforms and increased the number of elected members in the legislative councils.

In conclusion, the Indian Councils Act of 1861 introduced the 'Portfolio system of governance' in British India. This system allowed for the assignment of specific departments to individual members of the executive council, thereby improving specialization, efficiency, and representation in the decision-making process.

1861