D. SUBRAMANYAM REDDY* Changing Agrarian Relations and State of Peasantry in Andhra During Early Ninteenth Century BY THE time the British established their power over the Andhra Region as in other territories several developments were taking place both in England and in India and in different regions of Andhra. Consequent to the Industrial Revolution in England, India had lost the position of exporter of goods to England and on the contrary the country had become as a market and primary producer for the British industry.1 And due to the impact of the French Revolution the British capitalists began to demand that their Government should give them equal opportunities in the colonial countries like India.2 As a result (from the middle of the eighteenth century, and in particular, from the beginning of the nineteenth century) India had been gradually integrated into the world of modern capitalism, of course, in a subordinate or colonial position which led to Here, in India, at this time, while the Company servants were amassing wealth, the company itself was facing financial bankruptcy and it applied for a loan of £ 1400,000.7 The Company was hard pressed for money for investments in India for the purchase of goods which would fetch higher profits in Europe.8 Thus, India had to be compelled to pay for her exports or for investments in India and also for purchasing China tea for European markets.9 Thus, the company was in need of a stable revenue through the extension of cultivation for promoting the trade of the company which was also the main aim of the Bengal settlement.10 All these factors decided the fate of rural India. The decision to settle the revenues permanently with the zamindars at first and later by the ryotwari system was partly necessitated by the political *Jawahar Bharti, Kavali, Andhra Pradesh.