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THE COMPANY

ESTABLISHES POWER.

The eighteenth century in India was a period of political changes.

The Mughal empire, after the death of Aurangzeb in 1707, started declining.

The successors of Aurangzeb could not reverse this trends.

The Mughal SUBAS proclaimed their independence under their respective governors and big zamindars began asserting their authority.

The Portuguese explorer, Vasco-da-gama had discovered the sea route to India 1498.

It is said that when he returned , he sold the merchandise which he purchased in India , at a profit of 60 times the cost of expedition.

This roused the jealously of other European countries.

Coming of the Europeans.

The English east India company.

The Britishers originally came as a small trading company and did not want to acquire territories in India.

In 1600 the East India company got a charter from Queen Elizabeth 1, the ruler of England , granting them to sole right to trade with East .

This eliminated competition from other trading groups in England.

With this charter , the company could enter across the oceans , looking for new lands, from where to buy goods at a cheaper price and carry them back to Europe to sell at a higher price.

The East India company got exclusive rights to trade.

The trading companies made profit by excluding competition.

It is called mercantilism. However, they could not prevent other Europeans from coming in the eastern countries.

By the 17th century , the Dutch were exploring

The possibilities of trade with India and soon the French traders joined the race.

They all wanted to buy the same goods - the fine quality of silk and cotton , spices like pepper , clove , cardamom and cinnamon which were in high demand.

The increasing demand in Europe pushed up the prices and keen competition in Europe reduced the profits . It led to a bitter struggle among them.

The only way , the European companies could continue to enjoy their profits was by eliminating the others.

They sank each other’s ships, blockaded routes and prevented rival ships from moving . In India, when they started to fortify their settlements, it led to intense conflict with the local rulers.

English East India Company Settles In Bengal.

In India, the East India Company established trading settlements, managed by the company’s recruits called ‘factors’.

These settlements were called factories. A factory was place where nothing was manufactured.

It consisted of offices, godowns , residental house for the factors.

The Company traded in textiles , indigo , spices and saltpetre.

By 1696 they began to fortify their settlements .They also bribed the Mughal officials to give them

zamindari rights over three villagesOne of them was kalikata which later became

Calcutta.The English persuaded the Mughal emperor

Aurangzeb, to issue a farman [a royal order] granting the Company to trade duty free in bengal .

Very soon, the officials of the Company started misusing the terms of the farman.

The Company’s officials had carried their private trade and were expected to pay duty, but they refused to pay the duty and sent their goods in the name of the Company.

This was an enormous loss of revenue for Bengal.

HOW TRADE LED TO BATTLES

After the death of Aurangzeb, the Nawab of Bengal Murshid Quli Khan asserted his power and authority.

Bengal became an independent suba for all practical purposes.

Murshid Quli Khan and his successors Ali Vardi Khan and Siraj-ud-Daulah were strong rulers, they did not let the Company misuse their powers,demanded large tribute for the Company’s right to trade and stopped it from extending its fortifications.

There was exchange of words and both the Nawab and the Company blamed each other—the Nawab was ruining the trade of Company and the Company was depriving the Bengal government of it’s revenue.

The conflict led to confrontations which culminated in the Battle of Plassey.

BATTLE OF PLASSEY

Ali Vardi Khan died in 1756 and was succeeded by Siraj-ud-Daulah.

The Company wanted to instal a puppet Nawab on the throne, who would give them more concessions and privileges.

So, the Company tried to help one of his rivals, but without success , to become the Nawab .

Exasperated Siraj-ud-Daulah asked the Company to pay the revenue and to stop fortifications.

When negotiations failed , he marched with a strong force of 30,000 soldiers to the English factory at Kasim bazar, captured the Company’s officials, seized the warehouse, disarmed all Englishmen and blockaded and English ships.

Then he marched to calcutta to capture fort St.William.

When the English officials, at madras, heard about the fall of Calcutta , they sent a strong force under Robert Clive, along with naval fleet.

Finally in 1757,the Company’s forces under Robert Clive defeated Siraj-ud-Daulah.

A major part of the nawab’s army led by his commander Mir Jafar did not take part in the battle.

It was the major cause of the defeat of Siraj-ud-Daulah .Clive had made secret negotiations with Mir Jafar and

promised to make him nawab .The Battle of Plassey proved to be a turning point in the

history of the Company.The nawabs became puppets in their hands and they

carried on tax-free tradeAfter the defeat in the Battle of Plassey , Siraj-ud-Daulah

was assassinated and Mir Jafar was made the nawab of bengal

At this time the Company did not take up administrative responsibilities and decided to work with puppet nawabs.

Its main aim was to expand trade.However, they soon found that it was impossible to

work with them, as the nawabs were recluctant to become tools in the hands of the Company.

When Mir Jafar prostested , he was deposed and Mir Qasim was installed as the new Nawab .

When Mir Qasim refused to comply with the demands of the Company, he was defeated at the Battle of Buxar in 1764, driven out of bengal and Mir Jafar was again made the nawab

He promised to give ₹ 500,000 every month to the Company , but it was insufficient to meet the demands of trade and wars .

Mir Jafar died in 1765.In 1765, the Mughal emperor Shah Alam II granted

Diwani rights of Bengal to the East India Company .Now they could collect the land revenue and use

vast resources of Bengal .Earlier the Company had brought gold and silver to

buy the goods in India, now Bengal revenue was used to finance the trade, maintain Company’s troops and fight wars.

Mahmooda 8d