Final answer:
The Permanent Settlement involved a fixed contract between the East India Company and Zamindars who collected land revenue from farmers. The Company profited hugely from trade of opium, indigo, and sugar, thanks to forced cash crop farming and the exploitation of local labour.
Step-by-step explanation:
The Permanent Settlement was a system of land revenue implemented by the British in India. Its main features involved a fixed contract between the East India Company and the Zamindars (landlords) which permanently settled land revenue directly payable by the Zamindars to the company. The peasants, in turn, paid their dues to the Zamindars who made big profits as they had the right to increase the rates arbitrarily.
The East India Company massively profited from the production and trade of commodities including opium, indigo and sugar. Indian farmers were forced to grow these cash crops to favor Britain's industrial needs. The indigo and opium produced was exported to favorable markets, significantly China, where opium was traded for tea. Sugar cultivation also thrived using the labor of local farmers. The high-profit margin resulted from the structure of the trade, where production was tightly controlled by the British, the exploited local labor, and the vast, profitable foreign markets for these commodities.
Learn more about Permanent Settlement and Company Profits