Question

What benefits did the East India Company get from the Permanent Settlement?

• A. Increased revenue burden on the company
• B. Farmers started co-operating with the company
• C. The company started getting a fixed amount as rent
• D. None of these

Hint:

The key to understanding the Permanent Settlement is the word "permanent". It refers to the revenue demand being fixed permanently. This stability was the primary goal for the East India Company.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The Permanent Settlement was a land revenue system introduced by Lord Cornwallis in 1793 in Bengal, Bihar, and Orissa. It aimed to create a stable revenue source for the British East India Company.

Step 2: Detailed Explanation:
The primary objective and benefit of the Permanent Settlement for the East India Company was to ensure a stable and fixed income. The revenue to be paid by the zamindars (landlords) was fixed in perpetuity. This meant that regardless of agricultural output or price fluctuations, the Company was guaranteed a fixed sum annually, which simplified their financial planning and administration.
Let's look at the other options:
(A) is incorrect because the settlement fixed the revenue, it did not increase the burden on the company; the burden was on the zamindars to collect and pay it.
(B) is incorrect as the system was often exploitative, leading to peasant distress rather than cooperation.

Step 3: Final Answer:
The main advantage for the company was securing a fixed and regular revenue stream. This corresponds to option (iii) in the original image, which is option (C).