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#24 Concepts: GDP, GNP, NNP, NDP #25 Methods of Measuring National Income: Production, Income, Expenditure #26 Real vs. Nominal GDP #27 Limitations of National Income Accounting #28 Distinction between Growth and Development #29 Indicators of Economic Development: HDI, PQLI #30 Theories of Economic Growth: Harrod-Domar, Solow #31 Sustainable Development and Green GDP #32 Functions and Types of Money #33 Theories of Money: Quantity Theory, Keynesian Approach #34 Banking System: Structure and Functions #35 Role and Functions of Central Bank (RBI) #36 Objectives and Instruments: CRR, SLR, Repo Rate #37 Transmission Mechanism of Monetary Policy #38 Inflation Targeting Framework #39 Effectiveness and Limitations of Monetary Policy #40 Components: Government Revenue and Expenditure #41 Budgetary Process in India #42 Fiscal Deficit, Revenue Deficit, Primary Deficit #43 FRBM Act and Fiscal Consolidation #44 Types and Causes of Inflation #45 Effects of Inflation on Economy #46 Measures to 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(UNCTAD) #67 Characteristics of Indian Economy #68 Demographic Trends and Challenges #69 Sectoral Composition: Agriculture, Industry, Services #70 Planning in India: Five-Year Plans and NITI Aayog #71 Land Reforms and Green Revolution #72 Agricultural Marketing and Pricing Policies #73 Issues of Subsidies and MSP #74 Food Security and PDS System #75 Industrial Policies: 1956, 1991 #76 Role of Public Sector Enterprises #77 MSMEs: Significance and Challenges #78 Make in India and Start-up India Initiatives #79 more longer Growth and Contribution to GDP #80 IT and ITES Industry #81 Tourism and Hospitality Sector #82 Challenges and Opportunities #83 Transport Infrastructure: Roads, Railways, Ports, Airports #84 Energy Sector: Conventional and Renewable Sources #85 Money Market: Instruments and Institutions #86 Public-Private Partnerships (PPP) in Infrastructure #87 Urban Infrastructure and Smart Cities #88 Capital Market: Primary and Secondary Markets #89 SEBI and Regulation of Financial 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Depreciation/Appreciation: Causes and Impact #114 Sources of Public Revenue: Taxes, Fees, Fines #115 Types of Public Expenditure: Capital and Revenue #116 Components of the Budget: Revenue and Capital Accounts #117 Types of Budget: Balanced, Surplus, Deficit #118 Fiscal Deficit, Revenue Deficit, Primary Deficit #119 Implications of Deficit Financing on Economy #120 Performance and Challenges #121 Current Account and Capital Account #122 Causes and Measures of BoP Disequilibrium #123 Fixed vs. Flexible Exchange Rates #124 Purchasing Power Parity (PPP) Theory #125 Absolute and Comparative Advantage #126 Heckscher-Ohlin Theory #127 Free Trade vs. Protectionism #128 Tariffs, Quotas, and Subsidies #129 Concepts and Indicators #130 Environmental Kuznets Curve #131 Renewable and Non-Renewable Resources #132 Tragedy of the Commons #133 Economic Impact of Climate Change #134 Carbon Trading and Carbon Tax #135 Kyoto Protocol, Paris Agreement #136 National Action Plan on Climate Change (NAPCC) #137 Factors Affecting Productivity #138 Green Revolution and Its Impact #139 Abolition of Intermediaries

ECONOMICS

Introduction

The structure of land ownership in pre-independent India was heavily skewed in favor of a few privileged individuals who owned vast tracts of land, while the actual tillers lived in poverty, burdened by rent and bound by exploitative agreements. These landowners or "intermediaries" acted as the middlemen between the state and the cultivators, enjoying economic and administrative power without engaging in cultivation themselves.

After India gained independence in 1947, the socio-economic inequalities resulting from the zamindari and similar systems came under scrutiny. To correct these imbalances and move toward a more equitable agrarian structure, one of the first land reform measures introduced was the abolition of intermediaries. This reform was not only about redistributing land; it aimed to eliminate centuries-old systems of exploitation and lay the foundation for rural economic development and social justice.


Understanding Intermediaries and Their Role

In the colonial land revenue system, intermediaries like zamindars, jagirdars, and inamdars were individuals or families who were granted large landholdings by the British or pre-colonial rulers. Their role was to collect revenue from the peasants and pay a fixed share to the state.

These intermediaries:

  • Did not cultivate the land themselves

  • Exercised vast control over tenants and sharecroppers

  • Extracted high rents and often exploited the peasants through forced labor, illegal levies, and eviction threats

This structure led to a deeply entrenched feudal hierarchy in rural India, resulting in widespread rural poverty, low agricultural productivity, and minimal incentive for farmers to improve their land or adopt modern techniques.


What Was the Abolition of Intermediaries?

The abolition of intermediaries refers to the legislative and administrative measures undertaken by the Indian government after independence to eliminate the class of absentee landlords and establish direct contact between the government and the cultivators.

The aim was to:

  • Remove the layer of intermediaries between the state and the tillers

  • Transfer ownership rights to the actual cultivators

  • Secure tenancy rights and improve the socio-economic condition of peasants

  • Modernize agriculture by fostering a sense of ownership

The reform was considered revolutionary for its time, as it challenged the dominance of traditional elites and attempted to redistribute land to empower the rural poor.


Examples of Intermediary Systems in India

Different regions in India had varying forms of intermediary systems:

  • Zamindari System in Bengal, Bihar, and parts of Uttar Pradesh

  • Ryotwari System in Madras and Bombay Presidencies (though more direct, still involved some intermediaries)

  • Jagirdari and Inamdari Systems in Rajasthan, Gujarat, and Hyderabad

In Bengal, for instance, the Permanent Settlement introduced by Lord Cornwallis in 1793 gave zamindars hereditary rights over land in exchange for fixed tax payments to the British Crown. This made cultivators completely dependent on landlords, stripping them of legal rights.


Implementation of the Reforms

The process of abolishing intermediaries began with legislation at the state level, as land is a state subject in India’s Constitution. Some landmark legislations include:

  • The Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950

  • The Bihar Land Reforms Act, 1950

  • The West Bengal Estates Acquisition Act, 1953

Key provisions of these acts included:

  • Acquisition of estates and intermediary rights by the state

  • Compensation to intermediaries

  • Transfer of ownership rights to tenants and sharecroppers

  • Elimination of subtenancies

Despite legal frameworks, the success of implementation varied due to administrative inefficiencies, legal loopholes, and resistance from powerful landholders.


Impact of the Abolition of Intermediaries

The reform had far-reaching economic and social effects on rural India:

Economic Impact:

  • Created a class of small land-owning farmers

  • Improved agricultural productivity in some regions by incentivizing cultivators

  • Reduced rent-seeking and exploitation

  • Provided a basis for further agricultural reforms like the Green Revolution

Social Impact:

  • Weakened the hold of feudal lords in rural society

  • Encouraged social mobility among lower castes and marginalized groups

  • Promoted rural democracy and participation in local governance

Administrative Impact:

  • Simplified land revenue administration

  • Brought cultivators in direct contact with the government for services and credit

However, the outcomes were not uniform across the country. In states where political will and administrative efficiency were lacking, landlords managed to retain large parts of their holdings by manipulating land records or transferring lands to relatives.


Challenges and Criticisms

Despite its revolutionary vision, the abolition of intermediaries faced multiple challenges:

  • Evasion Tactics: Landowners used benami transactions and forged documents to retain land

  • Inadequate Compensation: Some landlords contested state acquisition in courts, delaying implementation

  • Ineffective Redistribution: In several areas, land did not actually reach landless farmers or sharecroppers

  • Administrative Delays: Poor land records and corruption hindered effective execution

Critics argue that although the reform weakened feudalism, it did not result in full agrarian justice. Many former intermediaries transitioned into capitalist landlords, and rural inequality, though reduced, persisted.


Contemporary Relevance

Even today, the legacy of intermediary abolition shapes India’s land policies. It laid the groundwork for:

  • Land ceiling laws to prevent accumulation of agricultural land

  • Tenancy reforms to protect tenant farmers

  • Efforts toward digitization of land records for transparency

In light of ongoing issues such as farmer protests, land disputes, and calls for agrarian reform, the lessons from the abolition of intermediaries are invaluable. It highlights the importance of political will, inclusive governance, and continuous monitoring in implementing transformative policies.

Moreover, land reforms continue to be crucial for achieving sustainable agriculture, food security, and rural development in a climate-challenged future.


Conclusion

The abolition of intermediaries was a watershed moment in India’s post-independence history. It was not just a legal reform but a socio-economic revolution that aimed to right historical wrongs and empower the rural poor. By eliminating the feudal structures that had long dominated agrarian life, the reform sought to create a more just and productive agricultural system.

Although the implementation faced significant hurdles and did not always meet its full potential, the reform succeeded in disrupting entrenched power structures and initiating a shift toward equity and justice in land ownership. Its impact continues to resonate in current land policy debates, reminding us of the need for inclusive and sustained reform.

As India navigates the challenges of climate change, rural distress, and agricultural sustainability, the spirit of the intermediary abolition—empowerment, equity, and reform—remains profoundly relevant. It is a reminder that meaningful change is possible when policy aligns with the needs of the people, backed by vision and commitment.