Describe the main features of the Permanent Settlement.

East India Company decided to invest in land for the development of agriculture. In 1793, the company introduced Permanent Settlement which means the revenue that needs to be paid is permanent and will not increase or decrease in future. The main features of the Permanent Settlement were:

• According to this settlement, the rajas and taluqdars were made Zamindars.

• Their job was to collect the rent form the peasants and then pay the collected revenue to the company.

• As the revenue that has to be paid was fixed permanently, the company thought that this might lead to the expected flow of income to the company.

• The Zamindars who were mediators will feel encouraged to invest in the land for its improvement.

• The fixation of revenue benefitted the Zamindars as Company cannot demand more revenue, so if the production increases, Zamindars take advantage of it.