The British-imposed land revenue system in India was a significant tool of colonial administration, transforming the agrarian economy and promoting commercial crops. The primary objective was revenue extraction to fund the expenses of the British Empire, including the cost of administration, military campaigns, and the export of wealth to Britain. The system also served as a means of political control by co-opting powerful intermediaries like landlords and village elites to act as loyal agents of the colonial regime.
The British introduced three major types of land revenue settlements in different parts of India: Permanent Settlement (1793), Ryotwari System (1860), and Mahalwari System (2019). These systems were oriented toward maximizing the state's revenue collection with minimal state expenditure.
The land revenue systems transformed Indian agriculture from a subsistence economy to one driven by cash crop production for export. However, this transformation was not accompanied by investment in infrastructure, irrigation, or technology, making agriculture vulnerable to climatic shocks. High revenue burden, growth of moneylenders, neglect of food crops, and no capital formation made agriculture vulnerable to climatic shocks.
The colonial land revenue system had profound social implications, including the rise of rural elites, erosion of traditional rights, marginalization of Dalits, tribal communities, and women, and a semi-feudal agrarian structure with deep class and caste divides. Post-independence India sought to undo the exploitative colonial land systems through a series of land reforms aimed at democratizing land ownership and increasing agricultural productivity.
However, implementation remained uneven due to political resistance, legal loopholes, and elite capture. In many states, land remained concentrated in the hands of a few, while informal tenancy and landlessness persisted.
The legacy of colonial land policies continues to influence India's rural economy today, with issues such as poorly maintained and outdated land records, inequality, policy gaps, digitisation efforts, and agrarian distress. Understanding this system is essential for designing effective agricultural, land, and rural development policies in contemporary India.