The British East India Company’s Influence on Indian Economic Modernization1

The British East India Company’s Influence on Indian Economic Modernization1

During the late rule of the Mughal Empire, India was fragmented politically and culturally, experiencing divisions not only in governance but also in religious and cultural aspects. Political fragmentation, religious conflicts, economic backwardness, and societal seclusion were the harsh realities of Indian society at that time. With the occupation of Bengal by the British East India Company, Britain exercised nearly 200 years of colonial rule over India, with the company's direct rule lasting for 100 years. The Indian feudal system suffered significant blows during the expansion of British East India Company's colonization, leading to the overthrow of the Mughal Empire and local Indian rulers, and the gradual erosion of the feudal system under external influences. The British East India Company's colonial rule became a key factor in catalyzing India's modernization process. Following the Battle of Plassey, the East India Company launched its conquest of Indian territories. In the initial phase of occupying Bengal, the company blindly implemented a system of excessive taxation to fulfill its pursuit of self-interest, which proved detrimental to both the people of Bengal and the company itself. Subsequently, the East India Company adjusted its land policies and initiated permanent land settlement in the Bengal region. In the context of land taxation, the company implemented the Ryotwari system in southern India and the Mahalwari system in northern India. The colonial activities and land reforms of the British East India Company had a profound impact on Indian society and economy.