All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
UPSC Exam  >  UPSC Questions  >  What was a major consequence of the Permanent... Start Learning for Free
SaveJoin the Discussion on the App
What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?
  • a)
    Increased investment in agriculture by zamindars
  • b)
    Permanent reduction of revenue demands by the Company
  • c)
    Frequent sale of zamindari lands at auctions
  • d)
    Expansion of indigo cultivation
Correct answer is option 'C'. Can you explain this answer?
FREE This question is part of
Download PDF Attempt Test
Download PDF Attempt this Test
Most Upvoted Answer
What was a major consequence of the Permanent Settlement introduced by...
Understanding the Permanent Settlement
The Permanent Settlement of 1793 was a significant policy introduced by the British East India Company in Bengal. It established a system where zamindars (landlords) were granted rights to collect taxes from the peasants, in return for a fixed revenue payment to the Company.
Consequences of the Permanent Settlement
One of the major consequences was the frequent sale of zamindari lands at auctions. This occurred due to several factors:
  • Financial Burden: The fixed revenue obligations imposed on zamindars often exceeded their capacity to pay, especially during periods of agricultural distress.
  • Lack of Investment: Instead of investing in land improvements or agricultural productivity, zamindars were often more focused on meeting immediate revenue demands, leading to neglect of the land.
  • Debt and Default: Many zamindars fell into debt, unable to pay the fixed amount to the East India Company, which led to the confiscation of their lands. These lands were then sold at public auctions to recover the dues.
  • Market Dynamics: The economic system created incentives for zamindars to sell their lands, as they sought to liquidate assets to pay off debts or taxes, leading to increased land transactions and instability in ownership.

Conclusion
The Permanent Settlement ultimately resulted in a significant transformation of land ownership in Bengal. The frequent sale of zamindari lands at auctions not only disrupted the traditional landholding system but also contributed to social and economic upheaval in rural areas. This shift had long-lasting implications for agricultural practices and the livelihoods of peasants in the region.
< Previous Question Next Question >
Explore Courses for UPSC exam

Similar UPSC Doubts

Read the following passageand answer the itemthat follow. Your answerto these itemshould be based on the passageonly.Passage-5In India, agriculture still engages about half of workforce, and about 85 per cent of its farms mall and marginal. Compared to China Vietnam, which have experienced fast structural and rural transformation, Indias story is of slow transformation. As a result, poverty reduction in India was at a much slower pace during 1988—2014, compared to China and Vietnam. Indiaspoverty reduction was slow during 1988-2005, but during 2005-2012, it accelerated dramatically—almost three times faster than during the earlier period. What did India do during this period? Research reveals that the relative price scenario changed significantly (by more than 50%) in favour of agriculture in the wake of rising global prices. This boosted private investments in agriculture by more than 5o%. As a result, agri-GDP growth touched 4/1% during 2007-2012 as against 2.4% during 2002—2007. The net surplus or agri-trade touched $25 billion in 2013-2014: real farm wages rose by 7% per annum. All this led to unprecedented fall in poverty.Which one of the following statements best reflects the critical message of the passage?

Read the following passageand answer the itemthat follow. Your answerto these itemshould be based on the passageonly.Passage-1Private investment in general is volatile. Foreign private investment is more volatile because the available investment avenues are significantly greater (i.e., the entire worl d). Therefore, the responsibility of providing employment cannot be left to Foreign Direct investment (FDl).The current FDI inflows are volatile over time and across sectors and regions, which is a necessary consequence of their search for the highest returns. The adverse consequences are unstable employment and an accentuation of income and regional inequalities. A probable positive consequence of foreign investment is the inflow of new technology and its subsequent diffusion. However, the technology diffusion is not at all certain because the existing state of physical and human capital in India may prove inadequate for the diffusion.With reference to the above passage, the following assumptions have been made:1. Relying on foreign investment in the long run is not an economically sound policy.2. Policies must be undertaken to reduce volatility in foreign private investment.3. Policies must be undertaken to strengthen domestic private investment.4. Public investment should be given priority over private investment.5. Substantial public investment in education and health should be undertaken.Which of the above assumptions is/are valid?

Top Courses for UPSCView all

Top Courses for UPSC

What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?a)Increased investment in agriculture by zamindarsb)Permanent reduction of revenue demands by the Companyc)Frequent sale of zamindari lands at auctionsd)Expansion of indigo cultivationCorrect answer is option 'C'. Can you explain this answer?
Question Description
What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?a)Increased investment in agriculture by zamindarsb)Permanent reduction of revenue demands by the Companyc)Frequent sale of zamindari lands at auctionsd)Expansion of indigo cultivationCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?a)Increased investment in agriculture by zamindarsb)Permanent reduction of revenue demands by the Companyc)Frequent sale of zamindari lands at auctionsd)Expansion of indigo cultivationCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?a)Increased investment in agriculture by zamindarsb)Permanent reduction of revenue demands by the Companyc)Frequent sale of zamindari lands at auctionsd)Expansion of indigo cultivationCorrect answer is option 'C'. Can you explain this answer?.
Solutions for What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?a)Increased investment in agriculture by zamindarsb)Permanent reduction of revenue demands by the Companyc)Frequent sale of zamindari lands at auctionsd)Expansion of indigo cultivationCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?a)Increased investment in agriculture by zamindarsb)Permanent reduction of revenue demands by the Companyc)Frequent sale of zamindari lands at auctionsd)Expansion of indigo cultivationCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?a)Increased investment in agriculture by zamindarsb)Permanent reduction of revenue demands by the Companyc)Frequent sale of zamindari lands at auctionsd)Expansion of indigo cultivationCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?a)Increased investment in agriculture by zamindarsb)Permanent reduction of revenue demands by the Companyc)Frequent sale of zamindari lands at auctionsd)Expansion of indigo cultivationCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?a)Increased investment in agriculture by zamindarsb)Permanent reduction of revenue demands by the Companyc)Frequent sale of zamindari lands at auctionsd)Expansion of indigo cultivationCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice What was a major consequence of the Permanent Settlement introduced by the East India Company in 1793?a)Increased investment in agriculture by zamindarsb)Permanent reduction of revenue demands by the Companyc)Frequent sale of zamindari lands at auctionsd)Expansion of indigo cultivationCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup