Correct Option
The correct option is 2 only
Explanation
The Zamindari system, formalized under the Permanent Settlement Act of 1793 by Lord Cornwallis, fundamentally altered the management of Land (a primary factor of production). It recognized Zamindars as the owners of the land, tasked with collecting revenue from peasants and paying a fixed share to the British government.
Statement-wise Analysis
- Statement 1 is Incorrect: The system was implemented in the Bengal Presidency (which included present-day West Bengal, Bangladesh, Bihar, and Odisha) and later in Varanasi and parts of Northern Madras. It covered approximately 19% of British India.
- Statement 2 is Correct: Zamindars generally did not invest in the improvement of agriculture or land productivity. They often functioned as absentee landlords living in cities, focusing on rent extraction rather than capital investment in the land.
- Statement 3 is Incorrect: Under the Permanent Settlement, the revenue demand payable to the state was fixed in perpetuity. It was not flexible and did not vary with the harvest. The "Sunset Law" required Zamindars to pay the fixed revenue by a specific date or face the auction of their land rights, regardless of crop failure.
Key Takeaway: The Zamindari system (Permanent Settlement) established a rigid revenue structure where the state's demand was fixed, and land ownership was vested in intermediaries who largely neglected agricultural development.