1. Introduction
This chapter talks about how the East India Company became powerful in India. Aurangzeb was the last really strong Mughal ruler who controlled large parts of India. After he died in 1707, Mughal power became weak and many regional kingdoms emerged under governors and zamindars. Delhi lost its central authority.
By the late 18th century, the British had become a powerful force in India. They actually started as a small trading company and didn’t want to take over territories at first. But eventually, they became masters of a huge empire. Even though Mughal emperors continued to exist after Aurangzeb, they remained only symbolic figures.
- For example, Bahadur Shah Zafar led the revolt of 1857
2. Early Trade and Competition
The British East India Company began simply as traders. They got royal charter from England in 1600 which gave them monopoly over Eastern trade. Their business model was simple:
- Buy Indian cotton, silk, spices cheaply
- Sell them at higher prices in Europe
But they weren’t the only ones interested in India! They faced competition from:
- Portuguese (established base in Goa by 1498)
- Dutch traders
- French traders
All these companies competed for cotton, silk, pepper and spices. This competition caused problems:
- Purchase prices went up
- Profits went down
So these companies started fighting to eliminate rivals. They would:
- Sink enemy ships
- Blockade trade routes
- Build fortified trading posts for protection
In this way, trade became mixed with politics because of all these conflicts.
3. Trade in Bengal
The Company set up its first factory in 1651 on the river Hugli in Bengal. These factories weren’t manufacturing units – they were places to:
- Store goods
- House officials
As trade expanded, more local merchants came to do business. By 1696, the Company built a fort around their settlement for protection. They also bribed Mughal officials to get zamindari rights and gained control over three villages, including Kalikata (which later became Calcutta, now Kolkata).
Mughal emperor Aurangzeb granted them duty-free trade. But Company officials abused this privilege by:
- Trading privately
- Avoiding duties
This caused big revenue losses for the Bengal government. Nawab Murshid Quli Khan was not happy and protested against this loss.
4. Conflicts with Bengal Nawabs
After Aurangzeb died, Bengal nawabs like Murshid Quli Khan, Alivardi Khan, and Sirajuddaulah started acting more independently. They:
- Refused to give Company concessions
- Demanded tributes
- Didn’t allow Company to mint coins or extend forts
- Accused Company of cheating and causing revenue loss
The Company complained that these demands were ruining trade. They wanted to expand settlements and rebuild forts.
These conflicts led to the imp Battle of Plassey in 1757. When Sirajuddaulah became nawab in 1756, the Company wanted a puppet ruler who would give them concessions. Sirajuddaulah opposed the Company’s interference, so he:
- Captured Company factory at Kassimbazar
- Took control of Calcutta fort
In response, the Company sent Robert Clive from Madras. Clive defeated Sirajuddaulah at Plassey, with help from Mir Jafar (Sirajuddaulah’s commander) who betrayed him. Plassey was the Company’s first major victory in India.
5. Expansion through Puppet Rulers
After the battle, Sirajuddaulah was assassinated. The Company installed Mir Jafar as the new nawab. They didn’t want to directly administer territories at first – they preferred expanding trade through local rulers who would follow their orders.
But even puppet nawabs like Mir Jafar didn’t cooperate fully. When he protested against Company demands, they removed him and installed Mir Qasim. But Mir Qasim also resisted, so they defeated him at the Battle of Buxar in 1764. Then they reinstalled Mir Jafar, who died in 1765.
The Company kept demanding more revenue and territories. In 1765, the Mughal emperor made the Company the Diwan of Bengal. This diwani allowed them to collect Bengal’s revenue, which they used to:
- Fund trade
- Pay for troops
- Build forts
This arrangement also reduced their need to import gold and silver from Britain.
6. Company Officials as Nabobs
Company officials became very rich and powerful. They forced nawabs to give them land and money. Robert Clive himself amassed a fortune of £401,102 (a huge amount in those days!). Clive was appointed Governor of Bengal in 1764.
In 1772, he faced an inquiry by the British Parliament. He was accused of corruption but was acquitted. He died in 1774.
But not all officials were corrupt or wealthy. Many died early because of:
- Disease
- War
The wealthy officials who returned to Britain lived very lavishly. They were called “nabobs” (from the word nawab) and were often mocked as social climbers.
7. Territorial Expansion Strategies
Between 1757 and 1857, the Company expanded its control over India. They were clever – they avoided direct military attacks initially and used political, economic, and diplomatic methods instead.
One strategy was appointing Residents to control Indian states. These Residents:
- Interfered in state affairs
- Influenced succession to the throne
Another strategy was forcing states into subsidiary alliances. Under these alliances:
- Rulers had to pay for Company’s protection forces
- If they couldn’t pay, their territory was taken away
For example:
- Awadh lost half its land in 1801 for non-payment
- Hyderabad had to give up territories for similar reasons
They also used the Doctrine of Lapse to annex kingdoms without heirs. Under this doctrine, they annexed:
- Satara
- Jhansi
- Nagpur
In 1856, they annexed Awadh claiming “misgovernment.” All these annexations made people angry and sparked the 1857 revolt.
8. Wars with Regional Powers
The Company fought wars with several powerful regional kingdoms:
Mysore:
- Grew strong under Haidar Ali and Tipu Sultan
- Controlled Malabar coast trade
- Tipu stopped Company’s spice exports in 1785
- Modernised army with French help
- Fought four wars with Company (1767–1799)
- Company won at Shrirangapatnam in 1799
- Tipu died defending his capital
- Mysore placed under Wodeyars with subsidiary alliance
Marathas:
- Weakened after 1761 Panipat defeat
- Divided into states under Peshwa confederacy
- Three Anglo-Maratha wars (1775–1819)
- Company gained Orissa, Agra, Delhi
- Peshwa removed in 1819, sent to Bithur
Punjab:
- Annexed in 1849 after Sikh wars
- Maharaja Ranjit Singh delayed annexation until his death in 1839
9. Resistance to British Rule
Many Indian rulers resisted the Company’s expansion:
Rani Channamma of Kitoor:
- Led resistance against British
- Arrested in 1824
- Died in prison
Rayanna:
- Continued Kitoor rebellion
- Destroyed British camps
- Hanged in 1830
Awadh people:
- Joined 1857 revolt
- Angered by nawab’s humiliating removal
Tipu Sultan:
- Known as “Tiger of Mysore”
- Legend says he fought a tiger unarmed and earned the title
- His resistance showed strong local opposition to British
10. New Administration
Warren Hastings served as Governor-General from 1773 to 1785. He expanded Company power in:
- Bengal
- Madras
- Bombay
These territories were divided into three Presidencies, each ruled by a Governor. The Governor-General was the supreme head over all of them.
Hastings introduced a new justice system in 1772:
- Civil courts (diwani)
- Criminal courts (faujdari)
- Maulvis and pandits interpreted local laws
They also created the position of Collector who managed:
- Revenue collection
- Law and order
The Collectorate replaced old centres of power. In 1773, they set up a Supreme Court, and the Sadar Nizamat Adalat became a court of appeal.
Later, Hastings faced impeachment for misgovernment.
11. Company Army
The Company’s power was based on its military strength. While the Mughal army had relied on cavalry and infantry, the Company:
- Adopted the sepoy army model
- Recruited and trained peasants as soldiers
- Shifted focus to infantry by 1820s
- Used muskets and matchlocks for wars
- Introduced European-style training and discipline
However, they ignored caste and community feelings, which created tensions among sepoys. This sepoy discontent eventually led to the 1857 revolt.
| Mughal Army | Company Army |
|---|---|
| Cavalry important | Infantry focused |
| Traditional weapons | Muskets, matchlocks |
| Local training | European-style discipline |
| Respected caste | Ignored community feelings |
12. Conclusion
The East India Company transformed from a simple trading company to the ruler of India. By 1857, they controlled about 63% of India’s territory and influenced the remaining areas indirectly.
Technological changes like steamships reduced travel time to India, which allowed more British people to settle there. In this way, they established a vast colonial empire.
13. Questions
Match the following:
- 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
Fill in the blanks:
- (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.
State whether true or false:
- (a) The Mughal empire became stronger in the eighteenth century: False. After Aurangzeb died in 1707, Mughal power became weak as regional kingdoms started emerging.
- (b) The English East India Company was the only European company that traded with India: False. Portuguese, Dutch, and French companies also traded with India.
- (c) Maharaja Ranjit Singh was the ruler of Punjab: True. He ruled Punjab until he died in 1839.
- (d) The British did not introduce administrative changes in the territories they conquered: False. They introduced many changes like new courts and revenue systems.
What attracted European trading companies to India? European trading companies were attracted to India because they could buy fine quality cotton and silk, which had big market in Europe. They also wanted spices like pepper, cloves, cardamom and cinnamon, which they could buy cheaply in India and sell at high profits in Europe.
What were the areas of conflict between the Bengal nawabs and the East India Company? Bengal nawabs and the East India Company fought over many issues. The nawabs were angry that Company refused to pay trade duties, demanded large tributes, and wanted rights to mint coins and extend forts. The nawabs accused Company of cheating and causing revenue loss. The Company complained that the nawabs demands were ruining trade and they wanted to expand settlements.
How did the assumption of Diwani benefit the East India Company? When Company got Diwani rights in 1765, they benefited a lot! They could now collect Bengal’s huge revenue, which they used to fund trade, maintain troops, and build forts. This also meant they didn’t need to import gold and silver from Britain anymore.
Explain the system of “subsidiary alliance” In subsidiary alliance system, Indian rulers were forced to accept British protection and not keep their own armies. They had to pay for Company troops, and if they couldn’t pay, their territories were taken away. This system let the Company control states internal affairs through Residents.
In what way was the administration of the Company different from that of Indian rulers? Company administration was very different from Indian rulers. They introduced a centralized system with Presidencies, a Governor-General, European-style courts, and Collectors who focused on revenue and order. This replaced traditional power holders and local legal systems.
Describe the changes that occurred in the composition of the Company’s army The Company’s army changed a lot over time. They shifted from cavalry to infantry by 1820s, used European-style training and discipline, recruited peasants as sepoys, and used muskets and matchlocks. But they ignored caste and community feelings, which caused tensions that led to the 1857 revolt.
Download Free Mind Map from the link below
This mind map contains all important topics of this chapter
Visit our Class 8 Our Pasts 3 page for free mind maps of all Chapters