Emergence of the Colonial Economy

Chaukidari tax was paid on 21,361 houses in 1813 but declined to 10,708 houses in 1830

Step 1: The decline of Dacca's muslin industry is one of the most cited examples of British deindustrialization. Step 2: The chapter provides specific evidence: the Chaukidari (watchman's) tax was paid on 21,361 houses in 1813, but this declined to only 10,708 houses in 1830. Step 3: This drop in the number of tax-paying households directly indicates that roughly half the population had left or perished — the city was hollowed out as its economic base (muslin weaving) collapsed. Step 4: Company investment in Bengal muslin was totally discontinued by 1814-15 — this is a separate but related fac

The zamindars were never owners of land; the government was the real owner and zamindars were merely tax collectors

Step 1: The Shore-Grant debate was a crucial intellectual disagreement that shaped the Permanent Settlement of 1793. Step 2: James Grant argued that in the Mughal period, the STATE (government) was the true owner of land, not the zamindars. Step 3: According to Grant, zamindars were merely tax collectors who received a commission on collected revenue — they had no ownership rights to sell or transfer land. Step 4: Grant therefore recommended settling land revenue directly with the ryots, continuing the Mughal practice. Step 5: Option D is actually the position of Sir John Shore — he argued aga

Government: 90%, Zamindars: 10%

Step 1: The Permanent Settlement fixed the revenue at the rates of the year 1789-90 permanently. Step 2: Of the total tax collected, the government would receive 90% and the remaining 10% would be the remuneration (income) of the zamindars for their collection services. Step 3: This 90:10 ratio meant the government secured the vast majority of land revenue while zamindars retained a fixed 10% share. Step 4: However, zamindars used this arrangement to their advantage — they enhanced rents from ryots far beyond the fixed government rate and pocketed the difference, making enormous profits throug

Zamindars had to pay revenue before sunset on the last day of the calendar year or face confiscation of zamindary

Step 1: The Sun Set Law was one of the most stringent provisions of the Permanent Settlement and a major instrument of zamindar dispossession. Step 2: Under this law, zamindars were required to pay their fixed annual land revenue to the government by the last day of the calendar year — specifically by sunset on that day. Step 3: If a zamindar defaulted on this payment — even by a few hours — their zamindary (estate) would be immediately confiscated and put to public auction. Step 4: This rigid enforcement led to many zamindars losing their estates, and new buyers — often merchants and moneylen