Chapter 2: From Trade to Territory – The Company Establishes Power
Introduction to British Power in India
Mughal Decline: Aurangzeb was the last powerful Mughal ruler. After his death in 1707, many regional kingdoms emerged, weakening the central power of Delhi.
British Arrival: The British initially came to India as a small trading company, but gradually took control and established a vast empire.
East India Company Comes to India
Charter of 1600: The East India Company received a charter from Queen Elizabeth I, granting it the exclusive right to trade with the East.
European Competition: Other European powers like the Portuguese, Dutch, and French also entered India, leading to competition over valuable Indian goods such as cotton, silk, and spices.
Conflict Among Companies: European trading companies often fought each other to eliminate competition, including sinking rival ships and blocking trade routes.
Company’s Trade in Bengal
First Factory in Bengal (1651): The English set up their first factory (trading post) by the Hugli River.
Fortifications: The Company began fortifying settlements, leading to conflicts with local rulers.
Duty-Free Trade: The Mughal emperor Aurangzeb granted the Company the right to trade without paying taxes, but the Company abused this privilege, causing financial losses to Bengal’s local government.
Trade Leads to Conflict
Conflict with Bengal Nawabs: Nawabs of Bengal, including Sirajuddaulah, opposed the Company’s unfair trade practices and refused to grant more privileges.
Battle of Plassey (1757): The Company defeated Sirajuddaulah with the help of Mir Jafar, who was promised the position of Nawab in return for his support. This victory marked the beginning of British power in India.
After the Battle of Plassey
Wealth and Control: After Plassey, Company officials accumulated wealth by demanding gifts and payments from local rulers.
Mir Jafar’s Displeasure: Mir Jafar was later replaced by Mir Qasim, and when Mir Qasim resisted the Company, he was defeated in the Battle of Buxar in 1764.
Diwani Rights: In 1765, the Mughal emperor granted the Company the right to collect taxes (Diwani) in Bengal, allowing it to use Indian resources to finance its operations.
Expanding British Control
Residents in Indian States: British officials called Residents were appointed in Indian states to oversee Company interests.
Subsidiary Alliance: Indian rulers were forced into agreements where they could not maintain their own armies and had to pay for British troops stationed in their territories.
British Conflicts with Local Rulers
Tipu Sultan and Mysore: Tipu Sultan, known as the "Tiger of Mysore," fought the British with the help of the French but was defeated and killed in 1799.
Wars with the Marathas: The Company fought several wars with the Marathas, ultimately defeating them in 1817-1819, which expanded British control in India.
Doctrine of Lapse
Annexation Policy: Lord Dalhousie introduced the Doctrine of Lapse, which allowed the British to annex states without a male heir. Territories like Satara, Sambalpur, and Jhansi were annexed under this policy.
British Administration and Army
New Administration: The British established a new administrative structure, dividing territories into Presidencies (Bengal, Madras, Bombay) each led by a Governor.
The Company Army: The British trained Indian soldiers, known as sepoys, in European warfare. This army became essential for maintaining British control.
Conclusion
By the mid-19th century, the British East India Company had established control over most of India, laying the foundation for British colonial rule.
