SSC
The Ryotwari system of land revenue, as later developed in the Bombay Deccan, was influenced by:
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Answer: Option A — The Ricardian theory of rent
Detailed Solution
The Ryotwari system, as developed in the Bombay Deccan, was influenced by the theory of rent of the English economist David Ricardo.
About Ricardo's theory of rent:
- David Ricardo (1772-1823) was a leading economist of the classical school.
- According to his theory, rent is the surplus income from land, over and above the costs of cultivation (including the wages of labour and the normal profit on capital).
- This surplus arises because land differs in fertility; better land produces more than the poorest land under cultivation.
- He argued that a landowner should be entitled only to this average surplus, and that the state could tax it.
NCERT on Ricardo and the Bombay Deccan:
- NCERT notes that by the 1810s, agricultural prices rose, increasing the value of the produce and the income of the Bengal zamindars, without any increase in revenue for the Company.
- Officials therefore wanted to maximise revenue in the new territories.
- NCERT notes that the new revenue system was influenced by David Ricardo's ideas.
- According to Ricardian ideas, a landowner should have a claim only to the "average rent" that prevailed at a given time.
- When the land yielded more than this average rent, the landowner had a surplus that the state needed to tax.
- If tax was not levied, cultivators were likely to turn into rentiers, and their surplus income was unlikely to be productively invested in the improvement of the land.
- NCERT notes that many British officials in India thought that history was confirming Ricardo's theory.
- In Bengal, zamindars seemed to have turned into rentiers, leasing out land and living on the rental incomes.
Influence of utilitarian thinkers:
- James Mill, who worked for the Company in London, was a follower of Ricardo and Jeremy Bentham, and supported the idea of taxing the surplus from land.
- Good to know
- The Physiocrats were French economists who saw land as the source of all wealth.
- Marx and Keynes came much later.
Quick tip
Remember: Ryotwari in the Bombay Deccan was influenced by David Ricardo's theory of rent ("average rent"; tax the surplus; NCERT); James Mill supported it.
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British Acts & Policies — Preparation
This question tests your understanding of British Acts & Policies, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers the constitutional and administrative acts passed during British rule, from the Regulating Act of 1773 and Pitt's India Act of 1784 to the Charter Acts, the Indian Councils Acts, the Government of India Acts of 1919 and 1935, and the Indian Independence Act of 1947, along with British economic, land revenue and education policies. Exam questions usually ask what a particular act introduced: the Indian Councils Act 1909 introduced separate electorates for Muslims, the Government of India Act 1919 brought dyarchy to the provinces, and the 1935 Act provided for a federation and provincial autonomy. Land revenue systems (Permanent Settlement, Ryotwari and Mahalwari) and education milestones such as Wood's Despatch (1854) are also tested. Practise the British acts and policies questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.