Identify the correct statements which led to the introduction of the 'Permanent Settlement' in Bengal:
(A) British officials felt that agriculture, trade and the revenue of the state could all be developed by encouraging investment in agriculture.
(B) Encouraging investment in agriculture could be done by securing rights of property and permanently fixing the rates of revenue demand.
(C) If the revenue demand of the state was permanently fixed, then the English East India Company could look forward to a regular flow of revenue.
(D) By the 1770s, the rural economy of Bengal was prospering with high yields, and the East India Company wanted a share in this increasing agricultural output.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
(A) British officials felt that agriculture, trade and the revenue of the state could all be developed by encouraging investment in agriculture. (Correct)
(B) Encouraging investment in agriculture could be done by securing rights of property and permanently fixing the rates of revenue demand. (Correct)
(C) If the revenue demand of the state was permanently fixed, then the English East India Company could look forward to a regular flow of revenue. (Correct)
(D) By the 1770s, the rural economy of Bengal was prospering with high yields, and the East India Company wanted a share in this increasing agricultural output. (Incorrect). By the 1770s, the rural economy in Bengal was in crisis, with recurrent famines and declining agricultural output.