Chapter 2: From Trade to Territory
The East India Company Comes East
In 1600, the East India Company acquired a charter from the ruler of England, Queen Elizabeth I, granting it the sole right to trade with the East. The company’s primary aim was mercantile – to buy goods at a cheap price and carry them back to Europe to sell at higher prices. However, the royal charter could not prevent other European powers from entering the Eastern markets. The Portuguese, Dutch, and French also arrived, leading to fierce competition and battles.
East India Company begins trade in Bengal
The first English factory was set up on the banks of the river Hugli in 1651. The Company persuaded Mughal officials to grant it zamindari rights over three villages and persuaded Emperor Aurangzeb to issue a farman granting the Company the right to trade duty-free. However, the Company officials misused this for their private trade, causing an enormous loss of revenue for Bengal.
The Battle of Plassey
After the death of Aurangzeb, the Bengal nawabs asserted their power. Sirajuddaulah, the nawab of Bengal, asked the Company to stop fortification and pay revenues. When negotiations failed, the Nawab marched with 30,000 soldiers to the English factory at Kassimbazar. Finally, in 1757, Robert Clive led the Company’s army against Sirajuddaulah at Plassey. The Nawab was defeated, mainly because his commander, Mir Jafar, betrayed him and sided with the British. The Battle of Plassey was a decisive victory for the Company and marked the beginning of its rule in India.
Company Rule Expands
After the Battle of Buxar (1764), the Company appointed Residents in Indian states. These Residents were political or commercial agents whose job was to serve the interests of the Company. The Company also forced states into a “subsidiary alliance”. According to the terms of this alliance, Indian rulers were not allowed to have their independent armed forces.
Tipu Sultan – The “Tiger of Mysore”
Mysore had grown in strength under the leadership of rulers like Haider Ali and his famous son Tipu Sultan. Tipu stopped the export of sandalwood, pepper and cardamom through the ports of his kingdom and disallowed local merchants from trading with the Company. Four wars were fought with Mysore (Anglo-Mysore Wars). In the last, the Battle of Seringapatam (1799), the Company ultimately won a victory. Tipu Sultan was killed defending his capital Seringapatam.
The Doctrine of Lapse
The final wave of annexations occurred under Lord Dalhousie, who was the Governor-General from 1848 to 1856. He devised a policy that came to be known as the Doctrine of Lapse. The doctrine declared that if an Indian ruler died without a male heir his kingdom would “lapse”, that is, become part of Company territory. Many kingdoms, including Satara (1848), Sambalpur (1850), Udaipur (1852), Nagpur (1853) and Jhansi (1854), were annexed under this doctrine.
Exercise Questions and Answers
1. Match the following:
Diwani - Tipu Sultan
“Tiger of Mysore” - right to collect land revenue
faujdari adalat - Sepoy
Rani Channamma - criminal court
sipahi - led an anti-British movement in Kitoor
Diwani - right to collect land revenue
“Tiger of Mysore” - Tipu Sultan
faujdari adalat - criminal court
Rani Channamma - led an anti-British movement in Kitoor
sipahi - Sepoy
2. Fill in the blanks:
(a) The British conquest of Bengal began with the Battle of _______.
(b) Haidar Ali and Tipu Sultan were the rulers of _______ .
(c) Dalhousie implemented the Doctrine of _______ .
(d) Maratha kingdoms were located mainly in the _______ part of India.
(a) The British conquest of Bengal began with the Battle of Plassey.
(b) Haidar Ali and Tipu Sultan were the rulers of Mysore.
(c) Dalhousie implemented the Doctrine of Lapse.
(d) Maratha kingdoms were located mainly in the south-western part of India.
3. State whether true or false:
(a) The Mughal empire became stronger in the eighteenth century.
(b) The English East India Company was the only European company that traded with India.
(c) Maharaja Ranjit Singh was the ruler of Punjab.
(d) The British did not introduce administrative changes in the territories they conquered.
(a) False. The Mughal empire became weaker in the eighteenth century after the death of Aurangzeb.
(b) False. The Portuguese, Dutch, and French companies also traded with India.
(c) True.
(d) False. The British introduced several administrative changes, creating Presidencies and implementing new systems of justice and administration.
4. What attracted European trading companies to India?
European trading companies were attracted to India primarily for economic reasons. India was famous for its fine quality cotton and silk, which had a huge market in Europe. Spices like pepper, cloves, cardamom, and cinnamon were also in great demand. The companies could buy these goods at very low prices in India and sell them at extremely high prices in Europe, leading to massive profits.
5. What were the areas of conflict between the Bengal nawabs and the East India Company?
The areas of conflict were:
1. The nawabs denied the Company concessions, demanded large tributes, and stopped it from minting coins and extending its fortifications.
2. The nawabs accused the Company of deceit and causing a huge loss of revenue to Bengal.
3. The Company officials were misusing their duty-free trade privileges for their private trade, refusing to pay taxes.
4. The Company, on its part, felt that the unjust demands of the local officials were ruining its trade.
6. How did the assumption of Diwani benefit the East India Company?
The assumption of the Diwani of Bengal in 1765 was hugely beneficial for the East India Company. It gave them the right to collect land revenue from the vast territories of Bengal. This allowed the Company to use these revenues to finance all its expenses, including purchasing cotton and silk textiles in India, maintaining its troops, and building its forts and offices. Before this, the Company had to import gold and silver from Britain to pay for its trade. After getting the Diwani, this outflow of treasure from Britain stopped completely.
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