Economic Reasons
- Due to the industrial revolution, there was a demand to open Indian market for all British traders. Industrial development in Britain meant India was not anywhere the Company bought finished goods for export to Europe.
- Industrialists saw in India a large and secure market for selling their factory goods produced on an industrial scale and a captive supplier of raw materials for industries in Britain.
- Company rule in India had to act as a facilitator to ensure conditions of law and order to make India a captive market for British goods.
Ideological Reasons
- Napoleon’s defeat and the success of Industrial Revolution boosted confidence of utilitarians and liberals in England prominent among them were Adam Smith, Jeremy Bentham, James Mill and his son John Stuart Mill and Thomas Macaulay.
- These thinkers believed in the superiority of science & reason and law and government which made West superior. These principles would also help India and improve its condition.
Evangelism
- Evangelists like Charles Grant & William Wilberforce believed that human character could be suddenly transformed by a direct assault on the mind.
- They sought to save souls through education, spread true faith (Christianity), and eradicated ignorance and superstition.
- Charles Grant argued British to assimilate Indians to promote civilization and the material prosperity of India. He believed it was a duty to civilize Indians.
- Evangelists wanted the entry of missionaries to be allowed in India.
Major provisions
- Abolished trade monopoly of the company in India i.e., Indian trade was open to all British merchants and free traders. However, it continued the monopoly of the company over trade in tea and trade with China.
- Asserted sovereignty of the British Crown over the Company’s territories in India.
- Allowed Christian missionaries to come to India for enlightening the people.
Provided for spread of education, revival of literature, and promotion of sciences among inhabitants of British territories in India. A sum of one lakh rupees annually was to be spent to spread education among natives. General Committee on Public Instruction was set up later headed by H Wilson. It laid a
- plan for establishing a Sanskrit College in Calcutta, two oriental colleges in Agra and Delhi and financial aid to existing tols and madrasas.
- Authorized local governments in India to impose taxes on persons. They could also punish the person for not paying taxes.
Critique of the Act
- Economic Impact – Deindustrialization of India:
- India was reduced to a raw material-producing country with her economy controlled and directed from outside.
- While India became flooded with British factory-made goods, high protective duties prevented the entry of Indian manufactured products into the British market.
- Age-old Cotton textile industry disappeared as it was uncompetitive against Industrial Revolution.
- Raw materials producers were subjected to vagaries and cycles of international economy.
- Chinese Opium Trade & Cultivation:
- Loss of monopoly trade with India made China crucial for EIC’s trade with India.
- Sale of raw cotton and opium (more significant) provided a reliable source of revenue to the Company-controlled Indian government.
- This revenue paid for procurement of Chinese tea for export to Britain. Chinese Tea became very popular in Britain.
- Opium: Exports of Opium to China started under Warren Hastings and first shipments were made in 1980s which subsequently expanded exponentially. Most opium was grown in Bihar and later in Malwa region of Western India. From 1830s, indentured emigration of opium growers from India increased significantly. Opium cultivation was tightly controlled using advances paid to growers. Opium was also sold to private British traders who smuggled it into China. Profits from opium sales amounted to about 20% of Indian revenues and helped EIC’s precarious finances.
- Promoted forceful religious conversions.
- Funding provided for education was significant as public funding for education was not even practiced in England at that time. However, the main purpose was to inculcate a sense of commitment among the Company’s officials by forcing them to train the natives.
