2. The world economy and political map changed
dramatically between the seventeenth and nineteenth
centuries. European ships and merchants reached
across the world, and their governments followed after
them, which inaugurated the era of Modern imperialism
and colonialism.
During this time, English merchants became
increasingly interested in capturing some of the
lucrative ocean-going spice trade in the Indian Ocean,
where Dutch and Portuguese companies were finding
themselves very profitable.
The East India Company was a monopoly trading
company that linked the Eastern and Western worlds
over two centuries .
3. On 31 December, 1600 British Queen
Elizabeth-I granted a royal charter to the
“Governor and Company of Merchants of
London trading with the East Indies,” soon
thereafter known as the East India
Company (EIC), which gave the
merchants a monopoly on all trade.
English company formed to trade with
East and South-East Asia and India.
5. Foundation of East India Company:
EIC began its trading activities in Bengal in 1633. It
established its first trading outpost, called the factory at
Hariharpur on the bank of the river Mahananda.
Permission of free trade:
In 1651, the Mughal Subahdar of Bengal, Prince Shuja,
granted the company the right to trade freely in Bengal in
return for an annual payment of three thousand rupees.
Flourishing trading activities:
A flourishing trade soon developed so much. By 1665, the
Company was able to pay 40 percent payments to its
shareholders. In the meantime, it built a large number of
factories and expanded its trade all over the Bengal.
6. Foundation of imperial centre:
By 1690, company founded its headquarters around the
cluster of three villages named Sutanuti, Govindapur and
Kolkata. By this step, it got an opportunity to create an urban
center of its own in Bengal.
Permission of extensive free trade:
In 1717, the Mughal emperor allowed the company extensive
free trade and other rights.
Growth of volumes of trade:
At that time, the East India Company’s volume of trade went
on growing. By 1725, the Kolkata port came to handle ten
thousand tons of company’s cargo per year. The company
fostered the growth of a local Baniya class. They acted as the
company’s agents or sometimes as their junior partners.
7. 1689
The Mughal emperor launched an attack on the
EIC base in Bombay. The EIC was defeated and
promised better behavior in the future. They
moved their headquarters to Calcutta.
1756
The start of a war between Britain and France.
This war was mainly fought in India, using trade
company finances and armies.
1757
Battle of Plassey. The EIC won a decisive war
against the ruler of Bengal and his French allies
on the side of Indian commander Mir Jafar. The
settlement with Mir Jafar enabled the EIC to
become rulers of land in India directly for the
first time.
1763
The Anglo-French war in India ended with the
British EIC having won a decisive victory. The
frequent use of armies in India meant that the
company established a strong military presence
across large areas of India.
1764
Battle of Buxar. The EIC won a victory against
the Mughal Emperor. The emperor then granted
the EIC the right to collect revenues (taxes)
from the province of Bengal.
1766 - 1799
Anglo-Mysore Wars. The EIC went to war against
the kingdom of Mysore. The EIC victory enabled
them to acquire more land.
1772 - 1818
Anglo-Maratha Wars. The EIC went to war
against the Maratha Empire in India. The
outcome of the war was that the EIC now
governed nearly all of India.
1854
The EIC conquered the province of Berar.
1856
The EIC conquered the province of Oudh.
1857
The Indian Uprising - a rebellion of Indians
against the rule of the EIC. Although the
uprising was suppressed, it had decisive
consequences for the EIC.
8. During early Mughal rule, There were two kinds
of administrative positions in Bengal.
1. Subadar (Law, Defense, Basic
Administration)
2. Diwani (Revenue collection)
Two persons used to directly appointed by
Mughal ruler.
Murshidkuli Khan was the first Bengal Nawab,
who took both of the post to rule Bengal
autonomously.
9. The Battle of Palashi gave the British control
not only in Bengal but also the whole of
Sirajuddaula’s regions of Bihar and Orissa.
This was legitimized when the Mughal
Emperor Shah Alam gave the British
complete administrative rights to the
conquered provinces. So, it was the
beginning of British administrative rule in
India.
10. EIC acquired the revenue administration of Bengal, Bihar and
Orissa in 1765. From 1765 to 1772 the company took revenues from
Bengal but took no responsibility in administrating it. This system
is called ‘DualAdministration’ (Diwani)
In this system, East India Company got the chance to supervise
the administration, but the local zamindars were accountable for
revenue collection (appointed by the Nawab/East India Company)
British just had to pay yearly 26 lakhs to Mughal Emperor and 53
lakhs to Bengal Nawab. In spite of giving this money, EIC used to
have a huge amount in their hand for trading.
This imbalance created the worst famine in 1770 in Bengal.
11. In 1786 Lord Cornwallis became the Governor-
General of India, He introduced ‘Permanent
Settlement’ in Bengal, Bihar and Orissa. It was a
system of tax reformation.
Previously, the right to collect taxes was given to
the highest bidder. As a result, the poor were
often harassed as the bidder wanted to make
maximum money out of the business. The EIC
also was not happy when the bidders couldn’t
pay the bidding tax.
12. After the Sepoy Mutiny or The Indian
uprising of 1857, the British government
decided that the East India Company had far
too much independent authority for its liking.
The British government dissolved the East
India Company. This hailed in the era of direct
rule of India, known as the British Raj.
