The Rise of the East India Company in India

Entry of the East India Company

• In 1600, Queen Elizabeth I gave the English East India Company the exclusive right to trade with the East.

• The Company searched for regions where production costs were low.

• But it soon realized competition was tough: Portuguese (1498), Dutch (1595), Danish (1616), and French (1664) were also trading in the same goods like silk, cotton, pepper, cloves, cardamom, and cinnamon.

• Rivalry pushed these companies to fortify settlements, attack ships, and arm themselves.

• Local rulers, too, got dragged into these conflicts.

Company in Bengal

• The first English factory was built at Hugli in 1651, with warehouses and offices.

• The settlement expanded as merchants settled nearby.

• In 1696, a fort was built, and Company officials bribed Mughal officers for zamindari rights over 3 villages.

• By 1691, Aurangzeb issued a farman allowing the Company to trade duty-free.

• Soon, the Company started pressing for more concessions.

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Tensions with Bengal Nawabs

• Nawabs opposed the Company’s growing privileges:

  • Refused concessions,

  • Demanded tributes,

  • Denied coin-minting rights,

  • Objected to new fortifications.

• They accused the Company of fraud and revenue loss.

• The Company, on the other hand, claimed its demands were fair and essential for trade.

• This conflict gradually moved towards war.

The Battle of Plassey (1757)

• Siraj-ud-Daulah, the last independent Nawab of Bengal, clashed with the Company.

• He opposed Company fortifications and interference in politics.

• In 1756, he attacked the English factory at Kassimbazar, capturing officials and blocking ships.

• The Company sent forces under Robert Clive, and negotiations failed.

• At Plassey (1757), Siraj’s commander Mir Jafar betrayed him, siding with the Company.

• Result: The Company won, Siraj was defeated, and Mir Jafar became Nawab (a puppet ruler).

Aftermath of Plassey

• Puppet rulers like Mir Jafar and Mir Qasim could not satisfy Company demands.

• Mir Qasim’s resistance ended in defeat at the Battle of Buxar (1764).

• After Mir Jafar’s death (1765), the Company itself became the true authority.

 

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Treaty of Allahabad (1765)

• Mughal Emperor Shah Alam II signed the treaty with Robert Clive.

• The Company got Diwani rights – the authority to collect revenue in Bengal, Bihar, and Orissa.

• This made the Company financially independent.

Wealth of Company Officials

• After Plassey, Company officers forced Nawabs to gift them land and money.

• Many officials became extremely wealthy, earning the nickname “nabobs”.

Expansion of Company Rule

• The Company expanded using political, diplomatic, and military means.

• Residents (Company representatives) were stationed in Indian courts to control decisions.

• Key policies used:

  1. Subsidiary Alliance (1798) – Indian rulers had to maintain Company troops at their own expense. Failure meant losing territory (e.g., Awadh, Hyderabad, Mysore).

  2. Paramountcy (early 1800s) – Claimed British authority was supreme. Resistance came from leaders like Rani Channamma of Kittur and Rayanna.

  3. Doctrine of Lapse (1848-56) – States without a male heir were annexed (Satara, Jhansi, Nagpur, etc.).

Mysore and Tipu Sultan

• Mysore under Haider Ali and Tipu Sultan was a strong rival.

• Tipu restricted trade with the Company, allied with the French, and modernized his army.

• The British fought four wars with Mysore (1767–1799).

• Tipu was finally defeated and killed in the Battle of Seringapatam (1799).

Struggles with the Marathas and Sikhs

• Marathas fought three wars with the British. Ultimately, the third Anglo-Maratha War (1817–19) weakened them, and the Company gained control over their territories.

• In Punjab, after Maharaja Ranjit Singh’s death (1839), two Anglo-Sikh wars were fought, leading to British annexation.

New Administration

• Warren Hastings reorganized administration:

  • Divided territories into Bengal, Madras, and Bombay presidencies.

  • Introduced a dual court system: criminal courts under qazi/mufti (supervised by Collectors) and civil courts guided by Hindu pandits/Muslim scholars.

  • A Supreme Court (1773) and Sadar Nizamat Adalat were also established.

• The Collectors emerged as key authority figures.

The Company’s Army

• Borrowed Mughal practices of recruiting peasants as soldiers, now called sepoys.

• Trained in European style, with guns and drills.

• A new uniform military culture emerged, but caste and community mixing often caused friction.

Conclusion

The East India Company began as a trading body but gradually turned into a ruling power. Through wars, alliances, and annexations, it reshaped India’s political and economic system. Exploitation and oppressive policies eventually fueled discontent, which finally erupted in the Revolt of 1857 – the First War of Independence.

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