NCERT Class 8 Social Science Our-Pasts-III: Chapter 3 — 3. Ruling the Countryside
This chapter details the East India Company's transition from a trading entity to the Diwan of Bengal in 1765. As Diwan, the Company gained control over Bengal's finances, aiming to maximize revenue for its expenses and trade. Initially, it lacked a systematic approach to revenue collection, leading to increased exploitation of artisans and peasants. The chapter highlights the economic crisis in Bengal, marked by declining artisanal production, agricultural collapse, and a devastating famine in 1770 that killed millions. It also touches upon the Company's need to manage local power structures while asserting its own authority. The text emphasizes how the Company's policies led to the colonization of the countryside and the restructuring of land revenue systems, ultimately serving its commercial interests. This chapter is crucial for understanding the early stages of British rule in India and its impact on the Indian economy and society.
Quick info
| Board | CBSE / NCERT |
|---|---|
| Class | Class 8 |
| Subject | Social Science |
| Book | Our-Pasts-III |
| Chapter | Chapter 3 — 3. Ruling the Countryside |
| Language | English |
| PDF type | NCERT Textbook |
| Session | CBSE 2026 |
| Reading time | 1 minute |
| Word count | 198 |
Learning outcomes
- Understand the significance of the Diwani grant for the East India Company.
- Analyze the Company's early revenue policies and their consequences.
- Recognize the economic crisis and famine in Bengal during the Company's rule.
- Explain how the Company began to colonize the countryside.
Vocabulary
| Word | Meaning |
|---|---|
| Diwan | Chief financial administrator of a territory. |
| Revenue | Income, especially that of a government or company. |
| Artisans | Skilled craftspeople who make things by hand. |
| Peasants | Farmers, especially small landowners or agricultural labourers. |
| Famine | Extreme scarcity of food. |
| Colonise | Establish control over the indigenous people of (an area). |
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Practice questions
- When did the East India Company become the Diwan of Bengal? Answer: On 12 August 1765.
- What was the primary role of the Company as Diwan? Answer: To be the chief financial administrator and organize revenue resources.
- What happened to the value of goods purchased by the Company in Bengal within five years of becoming Diwan? Answer: It doubled.
- What event in 1770 caused a terrible crisis in Bengal? Answer: A terrible famine killed ten million people.
Frequently asked questions
What was the significance of the Diwani grant for the East India Company?
The Diwani grant made the East India Company the chief financial administrator of Bengal, allowing it to collect revenue and use it to finance its trade and expenses.
How did the Company's revenue policies affect Bengal's economy?
The Company sought to maximize revenue, leading to increased demands on peasants and artisans. This resulted in declining production, artisans deserting villages, and a deep economic crisis.
What was the impact of the 1770 famine on Bengal?
The famine was devastating, killing about ten million people, which was one-third of Bengal's population, and severely impacting the economy and society.
Did the Company immediately establish a regular system for revenue assessment and collection?
No, initially the Company was unwilling to set up a regular system, focusing instead on increasing revenue as much as possible.
What does the painting of Robert Clive accepting the Diwani depict?
The painting shows the event as a majestic occasion, commissioned by Clive to highlight the significance of the Diwani grant in British imagination.
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NCERT Class 8 Social Science — Our-Pasts-III — Chapter 3 — 3. Ruling the Countryside. Verified by NCERT Help Editorial Team. Reviewed on 29 Jul 2026. Last updated 10 Aug 2026.