Chapter 2 – From Trade to Empire (Company Power is Established)

Chapter 2 – From Trade to Empire (Company Power is Established)

 

1. Arrival of the East India Company

• In 1600,  the East India Company  obtained the  sole right to trade with India from Queen Elizabeth I of England.
• They mainly       came to buy items like cotton, silk, spices (pepper, cloves, cardamom, cinnamon).
• First English factory: Established in  1651 on the banks of the Hooghly River. This is where the company called traders ‘Factors’.
• The Mughal emperor Aurangzeb  issued a decree  (firman) to the Company to trade without paying duty. It was misused by the Company officials, causing huge revenue loss to Bengal.

 

2. Trade and Conflict in Bengal

• In the early 18th  century, the Nawabs of Bengal (e.g. Murshid Quli Khan, Alivardi Khan, Siraj-ud-Daula) refused to grant concessions to the Company and demanded huge revenues from them.
• The Nawabs also prevented the Company from erecting fortifications and minting coins.
• Battle of Plassey – 1757:
  • Sirajuddaulah became the Nawab of Bengal and ordered the Company to cease its political activities.
  • The British, led by Robert Clive,  bribed Siraj-ud-Daula’s commander  Mir Jafar.
  • Siraj-ud-Daula was defeated in the battle and was executed.
  • Mir Jafar was made Nawab. It marked the beginning of British rule in India.
• Battle of Buxar (1764):
  • Mir Jafar was fed up with the growing demands of the British and opposed the Company.
  • The company replaced Mir Jafar and  made Mir Qasim the Nawab.
  • Mir Qasim also opposed the Company, which led to the Battle of Buxar.
  • Mir Qasim was defeated in this war and the Company gained the Diwani of Bengal in  1765, which meant that they could use the vast revenue resources of Bengal.

 

3. Company Rule Expands

• The company now began to make direct regional expansion.
•  Subsidiary Alliance:
  • Introduced by Lord Wellesley.
  • The Indian rulers were not allowed to have their own independent armies.
  • They will be protected by the Company’s army but they will have to pay for it.
  • If the rulers failed to pay, the Company would take possession of a part of their territory.
  • Example:  The Nawabs of Awadh and Hyderabad were forced to accept this treaty.
•  Tipu Sultan – ‘The Tiger of Mysore’:
  • Mysore was a powerful ruler who strongly opposed the British.
  • He modernized his army and allied with the French.
  • The British fought four wars with Mysore (Anglo-Mysore War).
  • Fourth Anglo-Mysore War (1799): Tipu Sultan was killed defending his capital of Seringapatam. Mysore was brought under the Subsidiary Alliance.
• Wars with Marathas:
  • By the end of the 18th  century, the Company wanted to crush the Maratha power.
  • Several Anglo-Maratha wars were fought.
  • Third Anglo-Maratha War (1817-1819):  The Maratha power was completely crushed.  The  Peshwa was sent on pension to Bithoor, near Kanpur.
•  Claim to Paramountcy:
  • Under  Lord Hastings  (1813-1823), the Company claimed that their power was supreme.
  • He threatened military action to capture the Indian states.
  • Rani Channamma and Rayanna:  Rani Chennamma of Kittur in Karnataka took up arms against the British. He was followed by his bodyguard Rayanna.
•  Doctrine of Lapse:
  • Introduced by Lord Dalhousie.
  • If an Indian ruler died and had no male heir, his state would become part of the Company’s territory (i.e. merged).
  • Examples: Satara, Sambalpur, Udaipur, Nagpur, Jhansi. Awadh was annexed on charges of misrule.

 

4. Setting up a New Administration

• Warren Hastings (1773-1785)  became the first Governor-General of Bengal.
• He made many changes in the administration of the company.
•  Administration of Justice:
  • In 1772, two courts were established in each district: a criminal   court and a civil  court.
  • Maulvis and Hindu pundits interpreted Indian laws, while European collectors presided over the civil courts.
•  Regulating Act – 1773: This act helped to control the affairs of the company.
• Centre of Administration of Indian Districts: Collector. His main function was to collect revenue and maintain law and order.

 

5. Company Army

• The company developed a new army of its own.
• Sepoy : It means Indian soldier (derived from sepoy).
• Variations:
  • Previously, the Mughal army consisted of cavalry and infantry .
  • The Company recruited more sepoys and infantry, as they were armed with  firearms.
  • The soldiers were trained and disciplined in the European style.

 

6. Conclusion

• By 1857, the East India Company had direct control over about  63%  of the area and 78% of the population of the Indian subcontinent.
• The Company came for the purpose of trade, but gradually it transformed itself into a political power and made massive territorial expansion.