CHAPTER 2
FROM TRADE TO
TERRITORY
HISTORY
GRADE 8
EAST INDIA COMPANY(EIC) COMES EAST
✣ EIC was granted charter in 1600, by queen Elizabeth 1 (England).
✣ EIC was a mercantile company.
✣ Mercantile: buy cheap, sell expensive COMPANY
✣ Portuguese – 1498, base at goa
✣ Dutch and French also dominated India.
✣ All companies were interested in buying the same thing.
✣ Competition was high.
✣ Companies tried to eliminate others.
✣ Set company ships on fire.
✣ Blockaded roads
✣ The trade was protected by fortifying the settlement.
EIC BEGINS TRADE IN BENGAL
✣ First English was set up on banks of Hugli river in 1651.
✣ EIC persuaded local merchants and traders to buy goods from
them.
✣ As company expanded merchant’s and traders settled near
company.
✣ In 1969, company fortified the area.
✣ 2 years later, EIC bribed a Mughal officer to give them zamindari
rights over 3 villages and Kalikata was one of them.
✣ Kalikata later grew into the city of Kolkata.
✣ EIC also got a farman (a royal order, edict) to trade duty-free (tax-
free).
✣ The company wanted more. They continuously tried to get more privileges.
✣ EIC refused to pay any taxes on their private trade. This caused a huge loss for
Bengal.
HOW TRADE LED TO BATTLES
✣ Company and nawab’s conflicts were persistent.
✣ Sirajuddualah the new nawab of Bengal, refused to grant any more
concessions to the EIC.
✣ He also asked the company to stop any more fortifications.
✣ Accusing the company of deceit, they claimed that the company
was depriving the Bengal government of huge amount sand
undermining the authority of the nawab.
✣ EIC was refusing to pay the taxes, writing disrespectful letters.
✣ EIC made unjust demands.
THE BATTLE OF PLASSEY
✣ EIC needed to bring down Sirajuddaulah.
✣ EIC promised the throne of Bengal to Mir Jafar (rival of nawab), if
he helped the company.
✣ Nawab asked EIC to bring down their fortification.
✣ Sirajuddaulah marched with 30000 soldiers to English factory at
Kassimbazar.
✣ He captured all English officers, unarmed them, loced the English
warehouse, blockaded the English ships.
✣ He established control over company’s fort.
✣ On, hearing the news of the fall of the Calcutta, company officials sent
ROBERT CLIVE.
✣ Clive led EIC’s army against the nawab at Plassey, the forces were led by Mir
Jafar.
✣ Sirajuddualah was defeated.
✣ Mir Jafar was the new nawab.
✣ This was a major and first victory of the EIC.
✣ Mir Jafar made complains and protested against EIC
✣ He was dethroned and MIR QASIM was the new nawab.
✣ When Mir Qasim complained he was defeated in 1764 battle of buxar.
✣ Mir jafar was Made the new nawab
✣ Nawab had to pay 50000 rupees every month.
✣ But the company wanted more.
✣ Mir Jafar died in 1765 and company’s mood changed.
✣ Company wanted to become nawabs themselves.
✣ In 1765, company got the diwani of Bengal.
✣ This solved their huge problems of finance.
✣ BRITISH GETTIG DIWANI
EIC GETTING DIWANI
COMPANY OFFICIALS BECAME ‘NABOOBS’
✣ After the battle of Plassey, the actual nawabs were forced to pay
vast amounts of money and land to British as a tribute.
✣ Clive came to India when he was 18 yrs. (1743) old, when he was
42 he left India (1767) with fortune worth 401102 euros.
✣ In 1764, he was asked to remove corruption. He was himself cross
examined due to the amount of the wealth he was holding.
✣ He committed suicide in 1774.(age- 49)
✣ Not all company officials made money like Clive did because most
of them died in a young age.
✣ Many officials of the EIC came from a humble background (certainly did not do
humble things :p ). Their motive was to earn a lot in India and spend it in
England.
✣ People who had a lot of money were called nabobs.
COMPANY RULE EXPANDS
✣ EIC, after battle of buxar, started interfering in state’s personal
matters.
✣ At times they would decide who would be the next successor of the
throne.
✣ The company forced the states into subsidiary alliance.
✣ CONCEPT: State is not allowed to have their own independent
army. They are to be protected by the company.
✣ They need to pay subsidiary forces. If any state failed to pay their
part of the kingdom would be annexed.
✣ When Richard Wellesley was governor general, Nawab of awadh was forced to
give over half of his territory to the company.
TIPU SULTAN
✣ AKA tiger of Mysore ruled from 1782- 1799, was a great leader as
well as a freedom fighter.
✣ Tipu controlled a profitable trade of Malabar coast where company
purchased pepper and cardamom. In 1785, he stopped the export of
it.
✣ He disallowed local merchants to trade with EIC.
✣ He established a close relationship with the French India and
modernised his army.
✣ British were furious.
✣ 4 wars were fought
✣ 1767- 1769
✣ 1780-84
✣ 1790-92
✣ 1799- Battle of Seringapatam, tipu was defeated.
✣ Wodeyars were the new king.
WAR WITH MARATHAS
✣ Marathas were defeated In third battle of Panipat in 1761.
✣ They were divided ito many states ad were ruled by different
dynasties such as Gaikwad, Holkar, bhonsle, Sindhia. They were
held together in a confederacy under a peshwa.
✣ Marathas fought three battles with British:
✣ 1782
✣ 1803-05
✣ 1817-19, here they were defeated.
✣ Peshwa was sent away to Bithur in Kanpur, with a pesion.
THE CLAIM TO PARAMOUNTCY
✣ Initiated by governor general Warren Hastings.
✣ CONCEPT: EIC claimed to superior than any other Indian state so,
any kingdom threatening them would be annexed.
✣ This did not go unchallenged. British tried to annex a small
kingdom kitoor, Rani Chanamma Took arms and led the army. She
was imprisioed in 1824 and died there in 1829.
✣ A poor chowkidar Rayanna, destroyed many British camps and
records.
✣ He was hanged in 1830.m\
✣ Punjab was taken over in 1849.
✣ Sid was taken over in 1843.
✣ EIC was worried about Russia, being a powerful kingdom, Russia could ruin the
trade.
✣ A log war was fought with Afghanistan between 1833 and 1842.
DOCTARINE OF LAPSE
✣ Initiated by Lord Dalhousie.
✣ If any King died Without an male heir, their kigdom would be
annexed.
✣ Satara: 1848
✣ Sambalpur : 1850
✣ Udaipur: 1852
✣ Nagpur: 1853
✣ Jhansi : 1854
SETTING UP A EW ADMINISTARTION
✣ From 1772 a new system of justice was established.
✣ Each district would have two courts: civil court (diwani adalat) and
criminal court (faujidari court).
✣ Maulvis and Hindu pandits interpreted the laws.
✣ Criminal courts were under a qazi and mufti under supervision of
the collectors.
✣ In 1775, 11 Hindu pandits were asked to compile a digest of hindu
laws.
✣ 1778- Muslim laws were compiled.
COLLECTOR
✣ His main job was to collect revenue and taxes and maintain law ad
order in his district with the help of judges, police ad darogaas.
THE COMPANY ARMY
✣ Company army also recruited Indian soldiers as well.
✣ There were two types of soldiers: sawar (soldiers on horseback) ad
paidal (soldiers on foot).
✣ They were trained in archery and sword fighting
CONCLUSION
✣ EIC went from trade to ruling
✣ New technologies aided the process.
✣ EIC established a direct rulein 63% of the territory and 73% of the
Indian population.
THE END
DHYANI PARAG PANCHAL
