The East India Company's need for more revenue from taxation inclined it towards establishing an empire. The Company needed such revenue to finance its exports from India as until then it had to pay for the exports in gold and silver acquired from the Americas which proved very expensive for the Company.
The East India Company's need for more revenue from taxation inclined it towards establishing an empire in India.
The East India Company initially came to India for trade purposes, but over time its focus shifted from commerce to territorial control. As the Company expanded its political influence, it needed substantial revenue to maintain its army, administration, and infrastructure. Taxation became the primary source of this revenue. By establishing control over territories, the Company could impose and collect taxes directly from the Indian population, particularly through land revenue systems like the Permanent Settlement and Ryotwari System. This steady income from taxation was more reliable and lucrative than profits from trade alone, ultimately driving the Company toward imperial expansion.
Economic Policies of British India: Understanding how revenue systems like Permanent Settlement and Ryotwari were implemented to maximize extraction.
Expansion of British Power: The transition from trading posts to territorial conquests through wars and treaties.
Colonial Administration: How the British established administrative structures to manage revenue collection and governance.
While no mathematical formulae are central, the concept of land revenue can be expressed as:
This simplified representation shows how revenue was calculated based on fixed or proportional taxes on produce or land.