East India Company

In 1600, Queen Elizabeth; the ruler of England; gave a charter to the East India Company. The charter granted the Company the sole right to trade with the East and no other English trading group could compete with it in the East. In those days, mercantile trading companies made profit mainly by excluding competition. Lack of competition enabled them to buy cheap and sell dear.

But the royal charter could not prevent trading companies from other European nations from entering the Eastern markets. It is important to mention that Vasco da Gama had discovered the sea route to India via the Cape of Good Hope; and he was a Portuguese. Hence, before the arrival of the British, the Portuguese had already established their presence in the western coast of India. They had their base in Goa. The Dutch began to explore the possibilities of trade in the Indian Ocean by the early seventeenth century. The French followed in quick succession.

India produced fine qualities of cotton and silk which had a big market in Europe. Various spices from India; like pepper, cloves, cardamom and cinnamon; were also in great demand in Europe. All the European companies were interested in buying these things which resulted in a price rise of these items. Thus, the potential profit reduced. Eliminating the rival competitors was the only way for a trading company to flourish. The intense competition to hold a monopoly resulted in fierce battle between the trading companies. Trade was carried on with arms, and fortifications were done to protect the trading posts.

East India Company begins trade in Bengal

The East India Company set up its first factory on the banks of river Hugli in 1651. The warehouse was called the factory and the Company’s traders were known as “factors. With the growth in trade, the Company persuaded merchants and traders to settle near the factory. The Company began to build fort around the settlement by 1696. It also got zamindari rights over three villages within two years by bribing the Mughal officials. One of these villages was Kalikata which subsequently developed into the city of Calcutta. The Company also convinced the Mughal emperor Aurangzeb to grant the Company the right to trade duty free. But some of the Company officials carried on private trade on the side; without paying the duty. This caused enormous loss of revenue for Bengal.

How trade led to battles

After the death of Aurangzeb, the Bengal nawabs began to assert their power and autonomy. Murshid Quli Khan, Alivardi Khand and Sirajuddaulah became the Nawab of Bengal in succession. They refused concessions to the Company, demanded large tributes in lieu of Company’s right to trade. They denied the Company any right to mint coins and stopped it from extending its fortifications.

The Battle of Plassey

Sirajuddaula became the nawab of Bengal in 1756; after the death of Alivardi Khan. The Company wanted to install a puppet ruler who would willingly give trade concessions and other privileges. The Company tried to help one of Sirajuddaulah’s rivals to become nawab but did not succeed in its attempt.

Sirajuddaulah was angry and asked the Company to stop interfering in the political affairs of his dominion, stop fortification, and pay up revenues. Once the negotiations failed, the Nawab marched with 30,000 soldiers to the English factory at Kassimbazar. Company officials were captured, the warehouse was locked, all Englishmen were disarmed, and the English ships were blockaded. After that, the Nawab marched to Calcutta to establish control over the Company’s fort.

When the news of the fall of Calcutta reached Madras, the Company officials in Madras sent forces under the command of Robert Clive. Reinforcements were sent by naval fleets. After that, prolonged negotiations with the Nawab followed.

Finally, Robert Clive led the Company’s army against Sirajuddaulah at Plassey; in 1757. Sirajuddaulah was defeated in the Battle of Plassey. But this could be possible because of support of Mir Jafar which Clive had managed to secure. Mir Jafar was promised that he would be made the nawab after Sirajuddaulah.

• The Company was still unwilling to take the responsibility of administration. Expansion of trade was its prime objective. It preferred to expand trade by taking help from local rulers who could be amiable to its ambitions.
• But even the puppet nawabs were not always as helpful as the Company wanted. In order to command some respect from their subjects, the nawab had to maintain some semblance of dignity and sovereignty.
• When Mir Jafar started to show his assertion, he was deposed and Mir Qasim was installed in his place. When Mir Qasim began to complain, he was defeated at the Battle of Buxar (1764). Mir Jafar was once again made the nawab.
• Mir Jafar had to pay Rs. 500,000 per month. But the Company wanted more money to finance its wars, and meet the demands of trade and other expenses. Mir Jafar died in 1765. By that time, the mood of the Company had changed. The Company now wanted to take direct control of power.

The Company, on the other hand, declared that the local officials used to make unjust demands. It was ruining the trade and removal of duties was necessary for the trade to flourish. The Company also wanted to enlarge its settlement and to rebuild its forts so that it could expand trade.

Thus, the conflicts between the nawab and the Company increased during the early eighteenth century.

Multiple Choice Questions: 

(i) Which one was not a trading company?
(a) The Portuguese
(b) The Dutch
(c) The French
(d) The Japanese

(ii) What was farman?
(a) It was a royal dress.
(b) It was a royal order.
(c) It was a royal food.
(d) It was a royal procession.

Match the following:

Answer:

Match the items given in Column A correctly with those given in Column B.

Answer:

(i) (b), (ii) (d), (iii) (f), (iv) (a), (v) (c), (vi) (e).

Very Short Answer Type Questions

Question 1. Who was the ruler of England in 1600?
Answer: Queen Elizabeth, I was the ruler of England in 1600.

Question 2.What caused huge loss of revenue in Bengal?
Answer: Aurangzeb’s Farman had granted the Company only the right to trade duty-free. But the officials of the Company, who were carrying on private trade on the side, also stopped paying duty. This caused a huge loss of revenue for Bengal.

Question 3. Why did the Company want a puppet ruler?
Answer: A puppet ruler would willingly give it trade concessions and other privileges.

Question 4. What was the main reason for the defeat of Sirajuddaulah at Plassey?
Answer: Mir Jafar, one of Sirajuddaulah’s commanders, did not fight the battle.

Question 5. Why did the Battle of Plassey become famous?
Answer: It was the first major victory the Company won in India.

Question 6. Whom did the Company install in place of Mir Jafar?
Answer: The company installed Mir Qasim in place of Mir Jafar.

Question 7.How did the Company purchase Indian goods?
Answer: It purchased Indian goods with gold and silver imported from Britain.

Question 8.Who was called ‘nabobs’?
Answer: Several Company officials returned to Britain with wealth and led flashy lives and showed their riches with great pride. They were called “nabobs’.

Question 9. Who were the Residents?
Answer: The Residents were the political or commercial agents and their job was to serve and further the interests of the Company.

Question 10. What purpose did the Residents serve?
Answer: Through the residents, the Company officials began interfering in the internal affairs of Indian states.

Question 11. Name the two rulers under whose leadership Mysore became powerful.
Answer:Haider Ali and his son, Tipu Sultan.

Question 12. Why did Tipu Sultan develop a close relationship with the French in India?
Answer: He did so in order to modernise his army with their help.

Question 13. What happened in the-Battle of Seringapatam?
Answer: Tipu Sultan was killed defending his capital Seringapatam.

Question 14. What was the result of the second Anglo-Maratha war?
Answer: The British gained Orissa and the territories north of the Yamuna river including Agra and Delhi.

Question 15 . What was the objective behind the Company’s new policy of ‘paramountcy ’?
Answer: The Company claimed that its authority was paramount or supreme and therefore its power was greater than that of Indian states.

Question 16. What was the result of Rani Channamma’s anti-British resistance movement?
Answer: She was put in the prison where she died.

Question 17. What was Lord Dalhousie’s Doctrine of Lapse?
Answer: If an Indian ruler died without a male heir his kingdom would become the part of Company territory.

Question 18. Name the Kingdoms which were annexed on the basis of ‘Doctrine of Lapse’.
Answer: Satara, Sambalpur, Udaipur, Nagpur, and Jhansi.

Question 19. What constituted the Mughal army?
Answer: Cavalry and infantry, that is; paidal soldiers.

Question 20.Why was Warren Hastings, the first Governor-General of India, tried after he returned to England?
Answer: He was tried for the misgovernance of Bengal.

Question 21. What was the result of this trial?
Answer: Warren Hastings was impeached.

Question 22. What attracted European trading companies to India?
Answer: European trading companies were attracted due to the following reasons:

1. Cheap and fine quality of silk and cotton.
2. For spices like pepper, cloves, cardamom and cinnamon etc.

Question 24.What were the areas of conflict between the Bengal Nawabs and the East India Company?
Answer:

1. The Bengal nawabs asserted their power and autonomy and refused to grant the Company concessions,
2. They demanded large tributes for the Company’s right to trade,
3. They denied the Company any right to mint coins,
4. They stopped the Company from extending its fortifications
5. Accusing the Company of deceit, they claimed that the Company was depriving the Bengal government of huge amounts of revenue and undermining the authority of the nawab. It was refusing to pay taxes, writing disrespectful letters, and trying to humiliate the nawab and his officials. These were the areas of conflict between the Bengal Nawabs and the East India Company.

Question 25. How did the assumption of Diwani benefit the East India Company?
Answer: The Mughal emperor, in 1765, appointed the Company’s the Diwan of the provinces of Bengal. The Diwani allowed the Company to exploit the vast revenue resources of Bengal. This solved a major problem that the company had earlier faced. Although its trade had expanded, it had to buy most of the goods in India with gold and silver imported from Britain. The overflow of gold from Britain stopped after the assumption of Diwani. Now revenue from India could finance Company expenses. These revenues they used to purchase cotton and silk textiles in India, maintain Company troops and meet the cost of building the Company fort and offices at Calcutta.

Question 26. Explain the system of ‘subsidiary alliance’.
Answer: Subsidiary Alliance System

1. The Britishers as a supreme power: Whichever state wanted to sign this treaty, had to accept the English as a supreme authority. The East India Company behaved as a guardian of that state.
2. Appointment of resident: The state kept an English Resident in their court,
   to check the activities of the king.
3. Keeping of an English army: Indian rulers were not allowed to have their army to protect the state from external and internal invasion. The state had to keep an English army. The state had to bear financial burden of the army.
4. Giving to the territory: If the Indian rulers failed to make payments, part of their territories were taken away as penalty.
   e.g.,
   • The Nawab of Awadh was forced to give over half of his territory to the company in 1801.
   • Hyderabad was also forced to cede territories on similar grounds.
5. Protection by the English: In return for the above-mentioned conditions the English Company promised to protect the state from its enemies. They also promised the state not to interfere in the internal affairs of the state but this was a promise they seldom kept.

Question 27.In what way was the administration of the Company different from that of Indian rulers?
Answer: The administration of the Company was different from that of the Indian rulers in the following ways:

1. The Company divided its administrative units called Presidencies. There were three Presidencies –  Bengal, Madras and Bombay. In India, districts were the main administrative units.
2. Each presidency was ruled by a Governor. Districts were ruled by the Collectors.
3. The supreme head of the administration of the Company was the Governor-General. But in India, the head of the administration was the king. .
4. The main job of the Governor-General was to introduce administrative reforms while the main job of the Collector was to collect revenue and taxes- and maintain law and order in his district.

Question 28: Describe the changes that occurred in the composition of the Company’s army.
Answer:

1. East India Company adopted its own method when it began recruitment for the army.
2. It was known as the sepoy army (from the Indian word sipahi, meaning soldier).
3. With the change in warfare technology from the 1820s, the cavalry needs of the Company’s army declined, because the British empire was fighting in Burma, Afghanistan, and Egypt. There the soldiers were armed with muskets and matchlocks
4. The soldiers had to keep pace with changing military requirements.
5. Its infantry regiments now became more important.
6. In the early 19th century the British began to develop a uniform military culture.
7. Soldiers were given European-style training drills and discipline.
8. They regulated their life far more than before.
9. Often this created problems since caste and community feelings were ignored in building a force of professional soldiers.

Question 29. After the British conquest of Bengal, Calcutta -grew from a small village to a big city. Find out about the culture, architecture, and the life of Europeans and Indians of the city during the colonial period.
Answer:
Hints: Visit the school library or get information from the internet.
Indians were influenced by British culture, architecture and lifestyle.

1. Culture: British influence began.
2. Architecture: Influenced by the British Architecture (fortification of the city, churches, etc.). Rich Indians started constructing bungalows in the English style.
3. Life: English education, English clothes, became to be popular.

Question 30. Collect pictures, stories, poems, and information about any of the following – the Rani of Jhansi, Mahadji Sindhia, Haidar Ali, Maharaja Ranjit Singh, Lord Dalhousie, or any other contemporary ruler of your region.
Answer:
The Rani of Jhansi: Collect information and photographs
Hints:

1.  Early childhood
2. Early marriage
3. Death of husband
4. Adopted son
5. Fight with British
6. Died fighting with the British.
7. History would always remember her.

Question 31. Give an account of different European trading companies besides the British East India Company that entered the Eastern markets.
Answer: Different European trading companies were:

1. The Portuguese. By the time the first English ships sailed down the West coast of Africa, round the Cape of Good Hope, and crossed the Indian Ocean, the Portuguese had already established their presence in the western coast of India and had their base in Goa.
2. The Dutch. By the early 17th century, the Dutch too were exploring the possibilities of trade in the Indian Ocean.
3. The French. The French traders soon arrived on the scene for the same purpose.

Question 32.What were the grievances of the Company regarding the Nawabs of Bengal?
Answer: The Company declared that the unjust demands of the local officials were ruining the trade of the Company. Trade could flourish only if the duties were removed. It was also convinced that to expand trade it had to enlarge its settlements, buy up villages and rebuild its forts.

Question 33. Write a note on Tipu Sultan – The ‘Tiger of Mysore’.
Answer: Tipu Sultan was the famous ruler of Mysore. He ruled Mysore from 1782 to 1799. Under his leadership, Mysore became very powerful. It controlled the profitable trade of the Malabar coast where the Company purchased pepper and cardamom. In 1785 Tipu Sultan stopped the export of these items through the ports of his kingdom and disallowed local merchants from trading with the Company. He also developed a relationship with the French in India to modernise his army with their help. The British got furious. They waged four battles against Tipu Sultan. The last battle proved unfortunate for him. He was killed defending his capital Seringapatam. The way he resisted the British is undoubtedly praiseworthy.

Question 34. Give a brief description of all the three Anglo-Maratha Wars. Also, write the main consequences.
Answer: The Company waged a series of wars against the Marathas in order to crush Maratha power:

1. In the first war, there was no clear victor, hence it ended in 1782 with the Treaty of Sabai.
2. The second Anglo – Maratha War began in 1803 and ended in 1805. This war was fought on different fronts resulting in the British gaining Orissa and the territories north of the Yamuna river including Agra and Delhi.
3. The Third Anglo – Maratha War of 1817-1819 crushed Maratha power. The Peshwa was removed. The Company now had complete control over the territories south of the Vindhyas.

Question 35. What administrative reformations were brought in the sphere of justice?
Answer: Before the reformations were brought, there were Maulvis and Hindu pandits who interpreted Indian laws for the European district collectors who presided over civil courts. The criminal courts were still under a qazi and a mufti. The Brahman pandits usually gave different interpretations of local laws. But there was no uniformity in them. To bring out about uniformity, in 1775 eleven pandits were asked to compile a digest of Hindu laws. N.B. Halhed translated this digest into English. By 1778 a code of Muslim laws was also compiled for the benefit of European judges, under the Regulating Act of 1773, a new Supreme Court was established, while a court of appeal – the Sadar Nizamal Adalat – was also set up at Calcutta.

Question 36. Give an account of the Battle of Plassey.
Answer: The Company was very keen to have a puppet ruler in place of Sirajuddaulah so that it might enjoy trade concessions and other privileges. It began to help one of Sirajuddaulah’s rivals become the nawab. This infuriated Sirajuddaulah. He sternly asked the Company to stop meddling in the political affairs of his dominion. After negotiations failed, the Nawab marched with his soldiers to the English factory at Kasimbazar, captured the Company officials, disarmed all Englishmen, and blocked English ships. Then he marched to Calcutta to establish control over the Company’s fort there. As soon as the Company officials in Madras heard the news of the fall of Calcutta, they sent forces under the command of Robert Clive, reinforced by naval fleets. Prolonged negotiations with the Nawab followed. But no concrete solution came out. Finally, in 1759, Robert Clive led the Company’s army against Sirajuddaulah at Plassey.

In this battle, Sirajuddaulah got defeated. The main reason was that one of his commanders, Mir Jafar, did not fight the battle. He, in fact, supported the Company by not fighting because the Company had promised to make him Nawab after defeating Sirajuddaulah. The victory of the Company in the Battle of Plassey gave it immense confidence. It was the first major victory of the Company in India.

Question 36. Who introduced the policy of ‘paramounty’? What did it mean? What sort of resistance did the Company face?
Answer: Lord Hastings, who was the Governor-General of India from 1813 to 1823, introduced a new policy of ‘paramounty’. Now the Company claimed that its authority was paramount or supreme, hence its power was greater than that of Indian states. In order to protect its interests, it was justified in annexing or threatening to annex any Indian kingdom.
However, this process did not go unchallenged. For example, when the British tried to annex, the small state of Kitoor (in Karnataka today), Rani Channamma took to arms and led an anti-British resistance movement. She was arrested in 1823 and died in prison in 1829. But this resistance movement did not stop. It was carried on by Rajana, a poor chowkidar of Sangoli in Kitoor. With popular support, he destroyed many British camps and records. He was also caught and hanged by the British in 1830.

Question 37. How did the East India Company begin to trade in Bengal?
Answer: The East India Company set up the first English factory on the banks of the river Hugh in the year 1651. This became the base from which the Company’s traders, known at that time as ‘factors’, operated. The factory had a warehouse where goods for export were stored and it had offices where Company officials set. As trade expanded, the Company persuaded merchants and traders to come and settle near the factory.

By 1696 the Company began to build a fort around the settlement. Two years later it bribed Mughal officials into giving the Company zamindari rights over three villages. One of these was Kalikata which later developed into a city, known as Calcutta. The Company also persuaded the Mughal emperor Aurangzeb to issue a firman granting the Company the right to trade duty-free. The Company tried continuously to press for more concessions and manipulate existing privileges. For instance, Aurangzeb’s Farman had granted only the Company the right to trade duty-free. But Company officials who were carrying on private trade on the side were expected to pay duty. But they refused to pay. This caused huge loss of revenue for Bengal.