2.3 - Setting up a New Administration

In this section, we will explore how the British East India Company set up a new administration to control India after their victory in the Battle of Plassey (1757) and the Battle of Buxar (1764). This process of establishing a formal governance system marked the beginning of British rule in India. The Company implemented various administrative changes to manage its expanding territory and ensure a steady flow of revenue.

After the defeat of the local rulers, the British needed a system to govern the large and diverse territory they had acquired. The first step was the creation of a centralized system of administration, with the British East India Company acting as the ruling power.

The Dual System of Government

One of the key features of the early British administration was the Dual System of Government introduced by Robert Clive in Bengal. Under this system, the Company had the power to collect revenue and control the army, but the Nawab (the local ruler) retained control over the day-to-day administration of the region.

This system, while giving the British control over the wealth of the region, was problematic because it led to weak local governance, corruption, and inefficiency. The Company's control over revenue collection allowed them to extract large sums from the peasants, often causing distress and discontent among the local population.

Revenue Collection and Land Settlement

One of the main tasks of the new British administration was the collection of revenue. The British system focused on revenue extraction through land taxes. The Zamindar system was introduced, where the zamindars (landlords) were made responsible for collecting taxes from the peasants and passing them on to the British authorities. This system, however, often led to exploitation, as zamindars were interested in maximizing their own profits rather than ensuring the welfare of the farmers.

The Permanent Settlement of 1793, introduced by Lord Cornwallis, was a significant reform. Under this system, zamindars were made permanent owners of the land, but they were required to pay a fixed revenue to the Company. This led to the rise of absentee landlords and created problems for the peasantry, as the zamindars often could not meet the revenue demands and resorted to harsh methods to extract payments from the farmers.

Administrative Changes

The British East India Company also restructured the administrative system. A series of reforms were introduced to streamline governance. The most notable reforms were:

• The creation of divisions and districts for better administration.
• Establishment of a judicial system based on British legal principles, with the introduction of courts and legal procedures.
• The establishment of police forces to maintain law and order.

Military Administration

Along with the administrative reforms, the British also restructured the military in India. The British East India Company set up a powerful army to defend its territory and suppress any uprisings. The British army relied heavily on Indian soldiers, known as sepoys, who were recruited from different regions. This military force was crucial in maintaining control over the subcontinent and expanding British influence.

Financial System

The British introduced a new financial system based on taxation and trade. The British officials implemented policies to maximize revenue from agriculture and trade. Taxes were levied on various goods and services, and the revenue collected was used to fund the military and administrative costs.

Impact on Indian Society

The British administrative changes had a deep impact on Indian society. Traditional power structures were disrupted, and the Indian rulers were often reduced to mere figureheads. The economic policies led to the exploitation of farmers and artisans. This created widespread dissatisfaction and laid the foundation for various uprisings and movements against British rule in the coming decades.