Lord Cornwallis's reign will always be remembered for its scientific reforms. He paid special attention to internal reforms by not giving much attention to the expansion of the empire. He achieved tremendous success in bringing neutrality and perseverance in company governance. He made many improvements in the company's service, leasing arrangements, justice and business. The permanent settlement made by him in the area of lagaan arrangement remains an important place in the history of British rule.

The most important reform of Cornwallis was to manage revenue collection and recovery. So far, the company collected levies on the basis of annual contract. Land was given to the highest bidder. This caused problems to both the company and the farmer. Lord Cornwallis implemented permanent arrangements in 1793 AD. On the basis of permanent settlement the landowner was made the land owner. As long as the landlady had given a fixed lease to the government, his authority was on the land. In the event of non-payment, he could be deprived of authority. Farmers had no relation with the government. By giving a commercial settlement to the permanent settlement, Karnavallis wanted to create a powerful class of landowners in India, who remained concerned about the British interests. By fixing the amount of lease, the British officers also became free from the hassle of levy rent.

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