According to one late 19th-century historian, the Physiocrats created the first strictly scientific system of economics. Physiocrats was a theory of wealth, which was prevalent in the 18th century.
The Physiocrats led by Quesnay believed solely in the value of agriculture. Quesnay’s understanding of value-added was rather primitive. He could not see how manufacturing could create wealth.
Physiocrats insist that only agricultural labour is productive. They believed government policies should not interfere with natural laws. They believed the land was the natural source of wealth. So, agriculture and land development were the source of all wealth.
The Physiocrat’s ideology opposed mercantilists’ ideology. When the East India Company ( EIC ) had introduced a different type of land revenue system in India, i.e. Zamindari or Permanent Settlement, they were influenced by the ideology of Physiocrats. EIC had applied the ideology of Physiocrats in their agriculture land revenue system. The failures of the land revenue system of the British government in India can be found in the ideology of Physiocrats.
To conclude, the Physiocrats ideology which was developed in Europe was blindly applied on Indian soil. This led to the penury of the Indian peasantry.
