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Unit 2: Consolidation of British Raj (1818-1843) and Development of Central Structure (1773-1863)

The Company’s judicial system was praised because it was based on the principle of sovereignty Notes
of law, introduction of codified secular law and Western concept of justice. However, it produced
many undesirable effects.
Changes in Economic Policy: The East India Company’s victories in the battles of Plassey (1757), and
Buxar (1764) brought about a change in the pattern of Company’s trade with India. In 1765, Emperor
Shah Alam II was forced to grant the Diwani of Bengal, Bihar and Orissa to the Company which
become a source of great surplus income for the Company. In 1765 Lord Clive estimated the total
revenue of Bengal at 4 millions which after defraying all administrative expenses would leave a net
surplus income at £1,650,000. The quantum of surplus income increased year after year due to increase
in rate of land revenue demand and ruthless method of collection of land revenue from the farmers.
The ‘surplus revenue’ from Bengal was used by the Company as its ‘investment’ to purchase Indian
goods for export from India. Obviously, the export of Indian good increased year after year but India
as a country did not receive any imported goods or bullion in return. Hence, the process of ‘drain of
wealth’ from India started.
The latter half of the 18th century witnessed the beginning of Industrial Revolution in England. A
new capitalist class emerged which through the support of the ruling Whig Party brought about
another shift in Company’s economic policy in India.
Social Legislation and Educational Policy: In 1808, the Court of Directors sent a despatch to Lord
Minto (Governor-General 1807-13) reiterating the Company’s policy of non-interference in the socio-
religious beliefs of the people living in the Company’s territories. The obvious instruction to the
Governor-General was to restrain the Christian Missions from their proselytizing activites. The Charter
Act of 1813 struck a different note when it lifted all restrictions on the entry of missionaries of the
U.K. into India.
The Court of Directors gauged the progressive mood of the Parliament and could hope for renewal of
the Charter of Company due in 1833 only if it could present the pro-reform postures and policies of
the East India Company in India. As such, the Court of Directors advised Lord William Bentinck
(Governor-General, 1828-35) to act fast and remove the most conspicious abuses in Hindu society.
Thus (in the environment of reform) Regulation XVII of 4 Dec., 1829 declared practice of Sati illegal in
Bengal Presidency and in 1834 its operation was extended to Madras and Bombay presidencies;
Infanticide had already been declared illegal by Bangal Regulations of 1795 and 1804 but its strict
enforcement was given due attention. The question of Widows’ Remarriage was carried out by Act of
1856 which legalized marriage of widows and declared issues from such marriages as legitimate.
Attention was also given to education of women. The process thus started was carried out under the
Crown administration after 1858.
Changes in Education Policy: The Western Christian Missions were pioneers in the field of
introduction of Modern system of education in India.
The English Company’s authorities did not accept responsibility for the education of the people
living in Company’s administrative territories in the 18th century. All the same, the Company’s
government set up the Calcutta Madras (1781), followed by a Sanskrit College (1792) at Benaras.
However, a body of reformers in Bengal, who no doubt admitted the value of Oriental learning, but
believed that better results could be achieved through a knowledge of English language and Western
literature available in English. The most conspicuous among them was Raja Rammohan Roy, who
joined hands with David Hare and with the help of Sir Edward Hyde East, (the Chief Justice of
Bengal) founded in March 1817 the Hindu College at Calcutta. Another, extreme pro-Western wing
popularly known as Young Bengal Group crusaded for the acceptance of the West in toto i.e. Western
thought, social values, great veneration for Christianity and in general a great disgust for Eastern
culture and Indian religions.
Orientalist-Anglicist Controversy: Till 1823, the educational clause of the Charter Act of 1813 remained
unimplemented. However, in 1823 a General Committee of Public Instruction was set up to take
charge of government educational and utilise the educational grants. Unfortunately, the ten members
of the General Committee of Public Instruction were divided into equal groups, viz., the Orientalists
(who advocated the utilisation of funds for promotion of oriental subjects) and the Anglicists

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