From Trade To Territory
Arrival of the East India Company
In 1600, Queen Elizabeth; the ruler of England; gave a charter to the East India Company. The charter granted the Company the sole right to trade with the East and no other English trading group could compete with it in the East. In those days, mercantile trading companies made profit mainly by excluding competition. Lack of competition enabled them to buy cheap and sell dear.But the royal charter could not prevent trading companies from other European nations from entering the Eastern markets. It is important to mention that Vasco da Gama had discovered the sea route to India via the Cape of Good Hope; and he was a Portuguese. Hence, before the arrival of the British, the Portuguese had already established their presence in the western coast of India. They had their base in Goa. The Dutch began to explore the possibilities of trade in the Indian Ocean by the early seventeenth century. The French followed in quick succession.
India produced fine qualities of cotton and silk which had a big market in Europe. Various spices from India; like pepper, cloves, cardamom and cinnamon; were also in great demand in Europe. All the European companies were interested in buying these things which resulted in a price rise of these items. Thus, the potential profit reduced. Eliminating the rival competitors was the only way for a trading company to flourish. The intense competition to hold a monopoly resulted in fierce battle between the trading companies. Trade was carried on with arms and fortifications were done to protect the trading posts.
East India Company begins trade in Bengal
The East India Company set up its first factory on the banks of river Hugli in 1651. The warehouse was called the factory and the Company’s traders were known as “factors. With the growth in trade, the Company persuaded merchants and traders to settle near the factory. The Company began to build fort around the settlement by 1696. It also got zamindari rights over three villages within two years by bribing the Mughal officials. One of these villages was Kalikata which subsequently developed into the city of Calcutta. The Company also convinced the Mughal emperor Aurangzeb to grant the Company the right to trade duty free. But some of the Company officials carried on private trade on the side; without paying the duty. This caused enormous loss of revenue for Bengal.How trade led to battles
After the death of Aurangzeb, the Bengal nawabs began to assert their power and autonomy. Murshid Quli Khan, Alivardi Khand and Sirajuddaulah became the Nawab of Bengal in succession. They refused concessions to the Company, demanded large tributes in lieu of Company’s right to trade. They denied the Company any right to mint coins and stopped it from extending its fortifications.The Company, on the other hand, declared that the local officials used to make unjust demands. It was ruining the trade and removal of duties was necessary for the trade to flourish. The Company also wanted to enlarge its settlement and to rebuild its forts so that it could expand trade.
Thus, the conflicts between the nawab and the Company increased during the early eighteenth century.
The Battle of Plassey
Sirajuddaula became the nawab of Bengal in 1756; after the death of Alivardi Khan. The Company wanted to install a puppet ruler who would willingly give trade concessions and other privileges. The Company tried to help one of Sirajuddaulah’s rivals to become nawab but did not succeed in its attempt.Sirajuddaulah was angry and asked the Company to stop interfering in the political affairs of his dominion, stop fortification, and pay up revenues. Once the negotiations failed, the Nawab marched with 30,000 soldiers to the English factory at Kassimbazar. Company officials were captured, the warehouse was locked, all Englishmen were disarmed, and the English ships were blockaded. After that, the Nawab marched to Calcutta to establish control over the Company’s fort.
When the news of the fall of Calcutta reached Madras, the Company officials in Madras sent forces under the command of Robert Clive. Reinforcements were sent by naval fleets. After that, prolonged negotiations with the Nawab followed.
Finally, Robert Clive led the Company’s army against Sirajuddaulah at Plassey; in 1757. Sirajuddaulah was defeated in the Battle of Plassey. But this could be possible because of support of Mir Jafar which Clive had managed to secure. Mir Jafar was promised that he would be made the nawab after Sirajuddaulah.
The Battle of Plassey was the first major victory won by the Company in India. After the battle at Plassey, Sirajuddaulah was assassinated and Mir Jafar was installed as the nawab.
The Company was still unwilling to take the responsibility of administration. Expansion of trade was its prime objective. It preferred to expand trade by taking help from local rulers who could be amiable to its ambitions.
But even the puppet nawabs were not always as helpful as the Company wanted. In order to command some respect from their subjects, the nawab had to maintain some semblance of dignity and sovereignty.
When Mir Jafar started to show his assertion, he was deposed and Mir Qasim was installed in his place. When Mir Qasim began to complain, he was defeated at the Battle of Buxar (1764). Mir Jafar was once again made the nawab.
Mir Jafar had to pay Rs. 500,000 per month. But the Company wanted more money to finance its wars, and meet the demands of trade and other expenses. Mir Jafar died in 1765. By that time, the mood of the Company had changed. The Company now wanted to take direct control of power.
From Trade To Territory
Diwani of Bengal
After the death of Mir Jafar, in 1765, the then Mughal Emperor Shah Alam II granted the Diwani rights of the provinces of Bengal to the Company. This was a major breakthrough for the Company because Diwani allowed it to use the vast revenue resources of Bengal.From the early eighteenth century, the Company had buy most of the goods in India by paying in gold and silver which were imported from Britain. This was putting a huge drain on the treasury in Britain. After the Battle of Plassey, the outflow of gold from Britain slowed down. This outflow completely stopped after the Company got the Diwani of Bengal.
Company Rule Expands
The Company rarely launched a direct military attack on an unknown territory. It preferred various political, economic and diplomatic methods to increase its influence before annexing an Indian kingdom.The Company appointed Residents in Indian states. Their job was to serve and further the interests of the Company. The Residents interfered in the internal affairs of Indian states. They influenced the decisions regarding successor to the throne and appointment at key administrative posts.
Subsidiary Alliance: According to this alliance, Indian rulers were not allowed to have their independent armed forces. The Company army was to protect the Indian state but the ruler had to pay for the “subsidiary forces”. If an Indian ruler failed to make the payment, then part of his territory was taken away as penalty. For example; Awadh and Hyderabad were forced to cede territories on this ground.
Tipu Sultan – The “Tiger of Mysore”
Mysore had become powerful under the leadership of powerful rulers like Haider Ali (1761-1782) and Tipu Sultan (1782-1799). Mysore controlled the profitable trade of the Malabar Coast. Tipu Sultan stopped the export of sandalwood, pepper and cardamom through the ports of his kingdom in 1785. Moreover, he disallowed the merchants from trading with Company. Tipu Sultan maintained a close relationship with the French in India. He modernized his army with the help from the French.The Company wanted to crush the rulers of Mysore. Four wars were fought with Mysore (1767-69, 1780-84, 1790-92 and 1799). The Company could finally get victory in the fourth Anglo-Mysore War; also known as the Battle of Seringapatam. Tipu Sultan was killed and the former ruling dynasty of the Wodeyars was given the charge of Mysore. It was kept under subsidiary alliance.
War with the Marathas
During the late eighteenth century, the Marathas were divided into many states under different chief (sardars). These chiefs belonged to different dynasties such as Sindhia, Holkar, Gaikwad and Bhonsle. These chiefs were held together in a confederacy under a Peshwa. The Peshwa was the effective military and administrative head of the confederacy and was base at Poona.A series of wars was fought with the Marathas. There was no clear victor in the first war which ended in 1782 with the Treaty of Salbai. The Second Anglo-Maratha War (1803-05) was fought on several fronts. The British gained Orissa and the territories north of the Yamuna river in this war. The Third Anglo-Maratha War (1817-19) crushed the Maratha power. The Peshwa was removed and sent away to Bithur near Kanpur with a pension.
The claim to paramountcy
Governor General Lord Hastings (1813-1823) initiated a new policy of paramountcy. According to this policy, the Company claimed that its authority was paramount or supreme. It could annex or threaten to annex any Indian kingdom to protect its interests. The later British policies were guided by this policy.Rani Channamma: Rani Channamma was the ruler of small state of Kitoor (in modern Karnataka). She took to arms and led an anti-British resistance. She was arrested in 1824 and died in prison in 1829. But a poor chowkidar of Sangoli in Kitoor; named Rayanna; carried on the resistance. He was caught and hanged by the British in 1830.
Annexation of Punjab: In the late 1830s, the Company feared a threat from Russia. In order to prevent Russia from entering India, the Company wanted to get control over the north-west. The Company established indirect control over Afghanistan after a prolonged war between 1838 and 1842. It took over Sind in 1843. After the death of Maharaja Ranjit Singh in 1839, the Company fought two prolonged wars with the Sikh kingdom. Finally, Punjab was annexed in 1849.
The Doctrine of Lapse
Governor General Lord Dalhousie (1848-1856) devised the policy of the
Doctrine of Lapse. According to this policy, if an Indian ruler died
without a male heir his kingdom would “lapse” and would become a part of
the Company territory. Many kingdoms were annexed by using this
doctrine, e.g. Satara (1848), Sambalpur (1850), Udaipur (1852), Nagpur
(1853) and Jhansi (1854). Annexation of Awadh: The British argued that people of Awadh were suffering from misrule of the nawab. It was the duty of the Company to relieve people from that misrule. Awadh was annexed in 1856.
Setting up a New Administration
Governor General Warren Hastings (1773-1785) introduced several administrative reforms, notably in the sphere of justice. A new system of justice was established from 1772. Each district was to have two courts; a criminal court and a civil court. The criminal court was called fauzdari adalat and the civil court was called diwani adalat. The European district collectors presided over civil courts. The criminal courts were still under a qazi and a mufti but they were also supervised by the collector. Maulvis and Hindu pundits interpreted the Indian laws for the collector.
Different interpretations by different Brahman pundits created lot of confusion. To bring a uniformity, eleven pundits were asked to compile a digest of Hindu laws; in 1775. N. B. Halhed translated this digest into English. Muslim law was also compiled in similar way by 1778.
A new Supreme Court was established under the Regulating Act of 1773. A court of appeal; the Sadar Nizamat Adalat; was also set up at Calcutta.
The Collector was the principal figure in an Indian district. His main job was to collect revenue and taxes and maintain law and order. His office was called the Collectorate. The Collectorate became the new center of power and patronage. Gradually, it replaced the previous holders of authority.
The Company army
As warfare technology changed from the 1820s, the Company army had to
keep pace with changing military requirements. Now, the infantry
regiment became more important. In the early nineteenth century the British began to develop a uniform military culture. Soldiers were increasingly subjected to European-style training. Now, drill and discipline regulated their life far more than before.
By 1857 the Company came to exercise direct rule over about 63 per cent of the territory. About 78 per cent of the population of the Indian subcontinent was under Company rule.
From Trade to Territory
NCERT Solution
Question – 1- Match the following:
Question – 2 - Fill in the blanks: (a) The British conquest of Bengal began with the Battle of ___________.
Answer: Plassey
(b) Haidar Ali and Tipu Sultan were the rulers of ___________.
Answer: Mysore
(c) Dalhousie implemented the Doctrine of ___________.
Answer: Lapse
(d) Maratha kingdoms were located mainly in the ___________ part of India.
Answer: south-western
Question – 3 - State whether true or false: - The Mughal empire became stronger in the eighteenth century.
- The English East India Company was the only European company that traded with India.
- Maharaja Ranjit Singh was the ruler of Punjab.
- The British did not introduce administrative changes in the territories they conquered.
Answer: (a) False, (b) False, (c) True, (d) False
Question – 4 - What attracted European trading companies to India?
Answer: Indian cotton and silk was in great demand in
Europe. Indian spices were also in great demand. Goods could be bought
at cheaper rates from India and could be sold at higher rates in Europe.
This prospect attracted the European trading companies to India.
Question – 5 - What were the areas of conflict between the Bengal nawabs and the East India Company?
Answer: The Bengal nawabs wanted tributes from the
Company in lieu of granting the right to trade. The Company was
forbidden from minting its own coins and from expanding fortifications.
The Company wanted to expand its settlement and wanted special
privileges.
Question – 6 - How did the assumption of Diwani benefit the East India Company?
Answer: This was a major breakthrough for the Company
because Diwani allowed it to use the vast revenue resources of Bengal.
The Company could use the revenue to finance its trade and other
expenses. It could also use the revenue to strengthen its military
power.
Question – 7 - Explain the system of “subsidiary alliance”.
Answer: According to this alliance, Indian rulers were
not allowed to have their independent armed forces. The Company army
was to protect the Indian state but the ruler had to pay for the
“subsidiary forces”. If an Indian ruler failed to make the payment, then
part of his territory was taken away as penalty. For example; Awadh and
Hyderabad were forced to cede territories on this ground.
Question – 8 - In what way was the administration of the Company different from that of Indian rulers?
Answer: The Company made a proper system of
administration. The Indian rulers did not have a proper system of
administration. The Company took suggestions from pundits and maulvis
before making new laws for criminal and civil cases. The Indian rulers
seldom thought about respecting local sensibilities before making any
rule.
Question – 9 - Describe the changes that occurred in the composition of the Company’s army.
Answer: The infantry regiment became more important.
In the early nineteenth century the British began to develop a uniform
military culture. Soldiers were increasingly subjected to European-style
training. Now, drill and discipline that regulated their life far more
than before.
From Trade to Terriory
Class Test -1
Question 1:
Who was the last powerful Mughal Emperor?
Question 2:
When did the Aurangzeb die?
Question 3:
Why did the British come to India?
Question 4:
Who arrested Bahadur Shah Zafar and his sons?
Question 5:
In which year did the first mutiny against the British rulers errupted in India?
Question 6: Who was the first to discover the sea route from Africa to India?
Question 7:
Where did the first English factory was set up in the 1651 in India?
Question 8:
When did the East India Company aquire a Charter from the ruler of England?
Question 9:
Which was the oldest name of Kolkata?
Question 10:
Who became the first Nawab of Bengal after the death of Alivardi Khan in 1756?
From Trade to Terriory
Class Test -2
Question 1:
When did Robert Clive become the Governor of Bengal?/
Question 2:
Who was known as the tiger of Mysore?
Question 3:
Who was the father of Tipu Sultan?
Question 4:
When did the second Anglo Maratha war happened?
Question 5:
When did the third Anglo Maratha war happened?
Question 6: When did Tipu Sultan become the ruler of Mysore?
Question 7:
When did the first Battle of Panipat happened?
Question 8:
Maharaja Ranjit Singh died in which year?
Question 9:
Lord Dalhousie became the Governor General of India in which year?
Question 10:
Where was the Sadar Nizamat Adalat set up for the first time?
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