Hi everyone! Until today, I considered history a very boring subject, so I always ignored it. But today, I tried reading it a little, and as a result, I kept reading more and more. I enjoyed it! I want to read it with you all, so I am writing here (at Learn with Vinod), what I read. Today, we will explore how the British East India Company established itself in such a large territory known as India.
James Mill1 believed that Asian societies were less civilized than Europe. He thought that before the British arrived in India, Hindu and Muslim rulers controlled the country. According to him, religious intolerance, caste restrictions, and superstitious beliefs shaped social life. Mill felt that British rule could improve and modernize India. In fact, he argued that the British should conquer all Indian territories to bring enlightenment and happiness to the people. He claimed that India could not progress without British guidance.
Aurangzeb ruled as the last powerful leader of the Mughal Empire. He controlled a vast territory, which is now known as India. After he passed away in 1707, many Mughal governors (Subedars) and prominent zamindars took advantage of the situation and started asserting their authority. They established regional kingdoms, shifting the political landscape. As these powerful regional kingdoms rose across different parts of India, Delhi gradually lost its ability to function as the empire’s central authority.
By the second half of the eighteenth century, however, a new force was making its way onto the political stage—the British. They slowly expanded their influence, setting the foundation for their future rule.
British East India Company (EIC)
In 1600, Queen Elizabeth I of England granted the East India Company (EIC) a charter that gave it exclusive trading rights in the East. With this charter, the company gained the freedom to sail across the oceans and search for new lands. It looked for places where it could buy goods at low prices and transport them back to Europe for profitable sales. Over time, this trading mission expanded, shaping the company’s powerful presence in India.
By the time the first English ship sailed down the west coast of Africa, rounded the Cape of Good Hope, and crossed the Indian Ocean, the Portuguese had already established themselves on India’s western coast and set up their base in Goa. In fact, Vasco Da Gama, a Portuguese explorer, discovered this sea route to India in 1498, opening new opportunities for trade.
By the early seventeenth century, the Dutch also started exploring trade possibilities in the Indian Ocean. Soon after, French traders arrived, adding to the growing competition. The problem was that all these companies wanted to buy the same goods, leading to intense rivalry in the region.
Indian cotton and silk, known for their fine quality, attracted a huge market in Europe. Spices like pepper, cloves, cardamom, and cinnamon were also in high demand. As European trading companies competed fiercely, they inevitably drove up prices while reducing profits.
In their desperate efforts to secure markets, these companies fought intense battles. Throughout the 17th and 18th centuries, they frequently sank rival ships, blocked important trade routes, and prevented competitors from transporting goods. Trade was no longer just about commerce—it was conducted with armed forces, and trading posts were heavily fortified for protection.
East India Company (EIC) in Bengal Trade
The East India Company set up its first English factory on the banks of the Hugli River in 1651. This factory became the base where the company’s traders conducted business. Inside, they stored goods for export in warehouses and managed operations from company offices. As trade expanded, the company convinced merchants and traders to settle near the factory, creating a lively commercial hub.
By 1696, the company started constructing a fort around the settlement to secure its position. Two years later, it bribed Mughal officials to obtain zamindari rights over three villages. One of these villages, Kalikata, later developed into the city of Calcutta. Additionally, the company persuaded Mughal Emperor Aurangzeb to issue a Farman that granted it the right to trade duty-free. However, this exemption caused massive revenue losses for Bengal, weakening the region’s economy.
From Trade to Battle
During the early 18th century, conflicts between the East India Company and the Nawabs of Bengal grew more intense. After Aurangzeb passed away in 1707, Bengal’s Nawabs asserted their power and autonomy. Murshid Quli Khan took charge, followed by Alivardi Khan, and then Sirajuddaulah. Each of them ruled strongly and resisted the company’s influence.
They refused to grant the company trading concessions, demanded large tributes for trade rights, denied its permission to mint coins, and blocked its attempts to extend fortifications. According to them, the company was draining Bengal’s revenue and weakening the Nawab’s authority. They accused the company of evading taxes, sending disrespectful letters, and trying to humiliate the Nawab and his officials.
On the other hand, the company argued that local officials were making unfair demands that hurt trade. It insisted that trade could flourish only if duties were removed. To expand its business, the company believed it needed to grow its settlements, buy more villages, and rebuild forts. These tensions led to repeated confrontations, eventually culminating in the Battle of Plassey.
- In 1877, James Mill, a Scottish economist and political philosopher, published a massive three-volume work. He divided A History of British India into three periods: Hindu, Muslim, and British. Through this classification, he aimed to present his interpretation of India’s past and its transformation under British rule. ↩︎