PYQ Vault

SSC CGL History · Modern India

Company Conquest and Land Revenue

How the East India Company won Bengal and then the rest of India, the three ways it collected land revenue, and the nationalist case that its rule drained India's wealth.

Why this matters

Twenty questions in the bank: nine from the 2023 shifts, eight from the 2024 shifts and three from the 2025 shifts, 14 of them EASY. SSC asks almost every one as a match of a name to a policy: which Governor-General devised which policy, which settlement ran in which province, who first wrote of the drain. Learn each policy with its maker and the trap is gone.

Concept 1 of 3: Battles and annexation policies

The Company began as traders, won Bengal with two battles, and then took the rest of India with policies rather than wars alone. Each policy has one Governor-General's name on it, and SSC asks that pairing more than anything else.

Definition

In time order:

  • Murshid Quli Khan made Bengal virtually independent of the Mughals from 1717 and moved its capital to Murshidabad.
  • Plassey (1757): Robert Clive defeated Siraj-ud-Daulah. It is taken as the start of British political power in India.
  • Buxar (1764): Major Hector Munro defeated three allies together: Mir Qasim, Shuja-ud-Daula of Awadh and the Mughal emperor Shah Alam II. The Treaty of Allahabad (1765) then gave the Company the Diwani (revenue rights) of Bengal, Bihar and Orissa.
  • Ring-fence policy: Warren Hastings defended the Company's lands by protecting neighbouring states such as Awadh as buffer states.
  • Subsidiary Alliance (1798): Lord Wellesley. The ruler kept a British force paid for by him, accepted a British Resident at his court and made no war or alliance without British consent. The Nizam of Hyderabad accepted first.
  • Doctrine of Lapse: Lord Dalhousie (1848 to 1856). A dependent state whose ruler died without a natural heir passed to the Company: Satara (1848), Jhansi and Nagpur among them.
  • James Rennell, asked by Clive, drew the first map of Hindustan.
Policy or eventYearName to remember
Bengal made independent, capital Murshidabad1717Murshid Quli Khan
Battle of Plassey1757Robert CliveQ
Battle of Buxar1764Hector MunroQ
Ring-fence (buffer states)1770sWarren HastingsQ
Subsidiary Alliance1798Lord WellesleyQ
Doctrine of Lapse1848 to 1856Lord DalhousieQ
Practice this conceptself-check · 5 quick reps

The same idea in a real exam question:

SSC CGL · 2025 · Tier I, 26 Sep 2025, Shift 2 · Q33Easy

Example 1 · Modern India · Company Conquest and Land Revenue

The Subsidiary Alliance system had which of the following conditions for the allied Indian rulers?

Wellesley and Dalhousie swapped

Wellesley devised the Subsidiary Alliance; Dalhousie applied the Doctrine of Lapse. Both annexed states, so SSC puts each as a wrong option for the other.

Clive did not fight at Buxar

Clive won Plassey (1757). Buxar (1764) was won by Hector Munro. Clive came back in 1765 to sign the Treaty of Allahabad.

Concept 2 of 3: Land revenue settlements

Land tax was the Company's biggest income, and it tried three systems. The question each system answers is the same: who pays the government, a landlord, the farmer himself, or the village as a whole?

Definition

The three systems:

  • Permanent Settlement (Zamindari), 1793, Lord Cornwallis: in Bengal, Bihar and Orissa. The zamindar paid a revenue fixed for ever.
  • Ryotwari, Thomas Munro and Alexander Read: mainly in Madras and Bombay. The ryot (cultivator) paid the government directly. Its assessment followed David Ricardo's theory of rent.
  • Mahalwari, Holt Mackenzie (1822): in the North-Western Provinces, Punjab and the Central Provinces. The village (mahal) as a whole was assessed.
SystemWho paidWhereName to remember
Permanent Settlement (1793)Zamindar, fixed amountBengal, Bihar, OrissaLord CornwallisQ
RyotwariThe cultivator, directlyMadras, BombayThomas Munro, Alexander Read
Mahalwari (1822)The village as a wholeNorth-West, Punjab, Central ProvincesHolt Mackenzie
Practice this conceptself-check · 4 quick reps

The same idea in a real exam question:

SSC CGL · 2023 · Tier I, 24 Jul 2023, Shift 1 · Q39Easy

Example 2 · Modern India · Company Conquest and Land Revenue

The Ryotwari Settlement, in which cultivators had to pay annual taxes directly to the government, was primarily introduced in which of the following provinces?

Cornwallis, not Wellesley or Curzon

The Zamindari (Permanent) Settlement is Cornwallis's, in 1793. The options often add other famous Governors-General.

Ryotwari is south and west, Mahalwari is north

Ryotwari ran mainly in Madras and Bombay. Punjab and the Central Provinces had Mahalwari, and Bengal had the Permanent Settlement.

Concept 3 of 3: The drain of wealth and early industry

Before British rule India sold the world its cloth. Under British rule money flowed the other way, to pay salaries, pensions and interest in England, and the nationalists named this flow the drain.

Definition

The facts:

  • Before modern industry, India's chief exports were cotton and silk fabrics.
  • Dadabhai Naoroji was the first nationalist to set out the drain theory, in Poverty and Un-British Rule in India (1901, built on his papers from 1867). R. C. Dutt carried it forward in The Economic History of India.
  • The drain went through the home charges: salaries, pensions and interest paid in England out of Indian revenue.
  • Modern industry under British rule: the first cotton mill at Bombay (1854), the first jute mill at Rishra near Calcutta (1855), and the Tata Iron and Steel Company at Jamshedpur (1907).
FactYearName or place
Poverty and Un-British Rule in India1901Dadabhai NaorojiQ
The Economic History of India1902R. C. Dutt
First cotton mill1854Bombay
First jute mill1855Rishra, near Calcutta
Tata Iron and Steel Company1907Jamshedpur
Practice this conceptself-check · 4 quick reps

The same idea in a real exam question:

SSC CGL · 2024 · Tier I, 25 Sep 2024, Shift 2 · Q38Easy

Example 3 · Modern India · Company Conquest and Land Revenue

‘Drain of Wealth’, a critique of the colonial exploitation, was given by which of the following nationalist leaders?

Naoroji first, Dutt later

SSC asks for the first nationalist to give the drain theory: Dadabhai Naoroji. R. C. Dutt is a correct name for the theory, but not the first.

Summary — formulas & gotchas at a glance

A revision cheat-sheet for the formulas and gotchas above. Click any concept name to jump back to its full explanation.

Reference tables (3)

Battles and annexation policies6 rows
Policy or eventYearName to remember
Bengal made independent, capital Murshidabad1717Murshid Quli Khan
Battle of Plassey1757Robert CliveQ
Battle of Buxar1764Hector MunroQ
Ring-fence (buffer states)1770sWarren HastingsQ
Subsidiary Alliance1798Lord WellesleyQ
Doctrine of Lapse1848 to 1856Lord DalhousieQ
Land revenue settlements3 rows
SystemWho paidWhereName to remember
Permanent Settlement (1793)Zamindar, fixed amountBengal, Bihar, OrissaLord CornwallisQ
RyotwariThe cultivator, directlyMadras, BombayThomas Munro, Alexander Read
Mahalwari (1822)The village as a wholeNorth-West, Punjab, Central ProvincesHolt Mackenzie
The drain of wealth and early industry5 rows
FactYearName or place
Poverty and Un-British Rule in India1901Dadabhai NaorojiQ
The Economic History of India1902R. C. Dutt
First cotton mill1854Bombay
First jute mill1855Rishra, near Calcutta
Tata Iron and Steel Company1907Jamshedpur

Watch out for (5)

Test yourself on Modern India

20 past SSC CGL questions from this chapter, timed at 12 minutes and marked the way the exam marks it. You see your score and every answer the moment you finish. Free to start.