He supported the founding of the Indian National Congress in 1885.
Dufferin handed back Gwalior to the Sindia with adequate compensation which proved his liberal attitude towards the native States.
In 1885 he passed the Bengal Tenancy Act by which he prohibited increase in the land revenue ryots or their wrongful eviction by the zamindars.
In 1887 he passed a similar Tenancy Act for Punjab.
Third Anglo-Burmese War started in 1885.
In 1886 Upper Burma was annexed and delimitation of Afghan Northern boundary took place.
Allahabad University was incorporated.
He introduced number of new taxes such as salt tax and petroleum tax.