The Punjab as a province of the British empire was larger than the kingdom of Ranjit Singh and it was also placed in a context almost of global economy and polity. The colonial rulers introduced a large measure of bureaucracy and the rule of law, which established a new kind of relationship between the individual and the state. The ‘paternal’ rule of the early decades was eventually replaced by the ‘machine rule’ of laws, codes and procedures. The executive, financial and judicial functions were separated. An elaborate administration was geared to the purposes of peace and prosperity. For political and economic purposes as well as for administration, new forms of communication and transportation were developed, symbolized by the post office, the telegraph office, the metalled road, the railway and the press.

To increase agricultural production and revenue from land the British administrators of the Punjab introduced reform in the agrarian system with periodic settlements and records of rights as its major planks. Land revenue began to increase steadily. New sources of revenue were tapped. Irrigation projects completed between 1860 and 1920 brought nearly 10,000,000 acres of land under cultivation, creating a ‘prosperous, progressive and modern’ region in the province and changing not only its agrarian economy but also its demographic distribution and even its physical appearance. The increase in production was reflected in the increasing volume and value of trade.