UPSC Polity Question

With reference to the difference between East India Company Rule and British Crown Rule in India, consider the following statements: 1. While local government did not have any financial powers under East India Company rule, they were given power to impose taxes under Crown rule. 2. While East India Company rule completely excluded Indians from civil services, Crown rule paved the way for their recruitment in administration. Which of the statements given above is/are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

Correct Answer:

D. Neither 1 nor 2

Explanation:

Statement 1 is incorrect: Local governments were authorized to impose taxes under the Company Rule itself, specifically by the Charter Act of 1813. Statement 2 is incorrect: Indians were not completely excluded from civil services under Company Rule. The Charter Act of 1853 introduced an open competition system for civil services, making it accessible to Indians.

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