FROM TRADE TO TERRITORY

NOTES

INTRODUCTION
Aurangzeb died in 1707 and was succeeded by weak rulers. Governors and
zamindars asserted their authority and assumed power in their own hands.
This led to the rise of regional kingdoms. The British East India Company
emerged as a strong contender for supremacy in India.
ENGLISH EAST INDIA COMPANY (EEIC) COMES EAST
In 1600, Queen Elizabeth I granted a charter to EEIC for monopoly to trade
with nations in the East. Trading Companies made efforts to maximize profit
by eliminating rivals in trade.
East India Company Begins Trade In Bengal

The first factory of EEIC, which worked as a warehouse and base for the
workers of the company, was established in 1651. The Company traders were
known as ‘factors’. As trade expanded, the Company persuaded merchants to
settle near the factory.

The factory was established on the banks of river Hugli. Officials sat in offices
and goods were stored in warehouses. By 1696, fortification of the factory
started. Zamindari rights were obtained over three villages by bribing Mughal
officials.

Additionally, it convinced the Mughal emperor Aurangzeb to sign a farman

allowing the Company to conduct duty-free business.

Later on, the Company obtained many trade privileges from the Mughal rulers
as well as from the native rulers. The Company was exempted from paying
duty and this led to loss of revenue for the native state.

How Trade Led To Battles

 The nawabs of Bengal asserted their power and checked the influence of the
company in their territory. Weak rulers fell prey to the power of EEIC.

The powerful Nawabs of Bengal restricted EEIC by disallowing concessions

and demanding tributes for the Company’s right to trade.
The Nawabs also accused the company of deceiving and undermining their
authority. On the other hand, the Company declared that unjust demands of
the Nawabs were ruining the trade of the Company.

The Battle Of Plassey

Sirajuddaulah succeeded Alivardi Khan. He faced the armies and the naval
fleet of the EEIC at Plassey in the year 1757. The English armies were led
by Robert Clive who managed to crush the forces of the Nawab, thus
winning the first major battle and making it a historic landmark.

Sirajuddaulah ordered EEIC to demolish its fortification and not to interfere

in the internal politics of the province.

The EEIC did not pay any heed to the Nawab’s order. The enraged Nawab
attacked a factory at Kassimbazar and also occupied Calcutta. The
Company’s authority at Madras then sent a reinforcement to recapture
Calcutta under Robert Clive.

EEIC thought that a weak person should succeed Alivardi Khan with an
intention of making him a puppet in the hands of the Company. A
contender to the throne against Sirajuddaula was Mir Jafar, a commander
of the army of the former. Mir Jafar deliberately did not participate in the
battle.

On 23rd June 1757, Sirajuddaula was badly defeated. A large section of his
army, which was commanded by Mir Jafar, didn’t actually fight the war.

The Battle Of Buxar

Mir Jafar became the new Nawab and in return gave huge amounts of revenue
to EEIC and its officials. EEIC felt it as the best way of earning profits and
started changing Nawabs irregularly. Mir Kasim was made Nawab after Mir
Jafar, and when he posed danger to their existence, EEIC replaced him again
by Mir Jafar.

Mir Kasim then mustered support of the Nawab of Awadh, Shujauddaula, and
Mughal emperor, Shah Alam II against EEIC. A battle was fought between
them and EEIC defeated the three major powers of northern India in one single
blow. This battle came to be known as the Battle of Buxar (1764).

Company Officials became Nabobs

Company officials became masters of Bengal and developed a taste of Bengal

and developed a taste for the Nawabs’ lifestyle. This resulted in widespread
corruption in the company.

COMPANY RULE EXPANDS

Tipu Sultan - The “Tiger Of Mysore”

The Company engaged in direct conflict only when a native state became
detrimental to company’s rule in the subcontinent. Mysore emerged as a
potential threat under Haidar Ali and his son Tipu Sultan.

Mysore state controlled the Malabar Coast, which was one of the most
profitable trade routes and source of cardamom and pepper to the Company.
In 1785, Tipu disallowed native traders from trading with EEIC and also
restricted trade facility for EEIC. To the disappointment of the British, he
maintained relations with French officials and modernised his army on
European lines. Four wars were fought between EEIC and Mysore (1767-69,
1780-84, 1790-92, 1799).
EEIC got overwhelming victory in the fourth war, i.e., the Battle of
Seringapatanam.

War With The Marathas

The third battle of Panipat shattered the dream of Marathas to rule India
from Delhi. It also led to the division of Maratha confederacy. Four chiefs
ruled from four centres under a Peshwa based in Pune.

The period before the battle of Panipat saw strong rule of Peshwa over these
chiefs but later on the power of the Peshwa declined and internal feuds
weakened the confederacy to the benefit of EEIC. Marathas were subdued in
 a series of wars, three in number. With the culmination of third war, Peshwa
was removed from Pune and was sent to Bithur near Kanpur.

The Claim of Paramountcy

The Doctrine of Lapse

SETTING UP A NEW ADMINISTRATION

Administration

Various charter acts and parliamentary acts shaped the administration of the
EEIC in India. 1773 Regulating Act and 1784 Pitts India Act were the first two
parliamentary acts that shaped the administration of EEIC.

EEIC gradually became the masters of many territories in India. All the
territorial possessions of EEIC were grouped under three presidencies, namely
Bengal, Bombay and Madras. Each had its own governor. Warren Hastings was
the first Governor General. He introduced judicial reforms in 1772. Each district
was provided with two types of courts: criminal and civil. District collector was
the head of Indian districts and he was responsible for maintaining peace, law
and order and collection of taxes. His office, Collectorate, became the new
centre for power and authority.

The Company Army