Although the revolt was severely crushed across the regions and all top leaders were either arrested or killed. It led to the foundation of a new wave of nationalism and unified sentiments against colonial rule.
- Government of India Act (1858) was introduced that abolished the rule of East India Company and marked the beginning of British raj under British Crown.
- Reorganization of Army:
- Strength of European Troops was increased relative to Indians.
- Natives from Punjab, Nepal and North-West were treated as Martial Races and were recruited in large numbers.
- Regional loyalties among soldiers were encouraged so that they do not unite on nationalism.
- Administrative Decentralisation:
- Legislative Councils were set up in provinces and Legislative powers were given to them. Financial devolution to provinces was initiated by Lord Mayo and expanded with time.
- Local Bodies:
- Lord Mayo emphasised strengthening municipal institutions. New Municipal Acts were passed in provinces beginning with Madras in 1871. Lord Ripon extended the election principle to local bodies where even a private citizen was eligible for contesting for the office of Chairman of a municipality.
- Relations with Princely States:
- Princely States sided with Britishers during the revolt of 1857. Thus, after the revolt, British identified Princes and Zamindars as vested interests who benefitted from continuation of British rule.
- Policy of Doctrine of Lapse and annexation of princely states were abandoned. Punishments were introduced for erring princes. Ex. Malhar Rao Gaekwad of Baroda was replaced by a member of Gaekwad family in 1874.
- Royal Titles Act of 1876 was passed and Queen Victoria assumed the title of Empress of British India and Princely India (Kaiser-i-Hind).
- A Court of Wards was established which had a right to take over the estate of a prince, landlord or aristocrat in case of bankruptcy, put in under the care of a manager and return the estate to the original owner once the arrears had been cleared and the property had become solvent.
- Lord Canning toured North India and held Mughal-style durbars with Indian princes and other officials. This was done to demonstrate that British had replaced Mughal rule and gave legitimacy and continuity to British rule. Indians who had displayed loyalty to British during the 1857 revolt were honoured with titles of Raja, Nawab, Rai Sahib, Rai Bahadur and Khan Bahadur, and granted special privileges, pensions and land grants.
- A new royal order of Indian knights, Star of India, was established.
- Royal family members started to regularly visit India.
- Agrarian Reforms
- Tenancy acts that gave occupancy rights to ordinary cultivators started being introduced in Bengal and Awadh in 1859 and later extended to other provinces.
- British government stopped increasing land revenues till World War I. Revenue demand was increasing to be met by excise and income taxes. However, revenue from land continued to remain the most important source of revenue.
- Economic Policies:
- India was forced to pursue a Free Trade Policy enabling dumping of British industrial goods harming Indian industry.
- British Finance Capital entered India in a big way and dominated industry, trade & commerce. Railways, iron & coal mines, plantations of tea, coffee, jute, indigo & forestry were developed for helping secure raw materials for British industry.
- Land tenure policy divided the agricultural class into two rival groups – Zamindar vs Tenant.
- Excessive revenue demand led to empowerment of moneylenders who exploited the poor.
- Traditional handicrafts and rural industries were destroyed for want of support and patronage.
- To remain, competitive Indian industrialists, tried to economize by forcing long working hours, employing child labour & paying inadequate wages in factories.
- A centralised financial administration with a definite budget assigned to each province was established. Budget assigned did not necessarily correspond with revenue generated in respective provinces. (Benefit for poorer provinces).
- Educated & middle classes were discriminated against in public employment.
- An Arms Act was passed that prohibited people from carrying weapons without a license.
