From Trade to Territory – Key Vocabulary

Decline of Mughal Authority & British Entry

Aurangzeb’s death 1707 ➔ Mughal centre weak; subadars & zamindars create regional kingdoms.
British East India Company (EIC) arrives as small trading body; gradually fills power vacuum.

Royal Charter 1600 by Queen Elizabeth I ⇒ EIC monopolises English trade with the “East”.
European rivalry (Portuguese, Dutch, French) raises Indian commodity prices; companies fortify posts, use armed ships.
First English factory on River Hugli 1651; fortification starts 1696; gains duty-free trade farman from Aurangzeb.
Private trade of Company officers evades duties ⇒ Bengal revenue loss, Nawab resentment.

Rising friction with Bengal Nawabs (Murshid Quli Khan → Alivardi Khan → Sirajuddaulah).
Battle of Plassey 1757: Robert Clive + defection of Mir Jafar defeat Sirajuddaulah ⇒ first major British victory.
Battle of Buxar 1764: Mir Qasim + Mughal Emperor Shah Alam II + Shuja-ud-Daulah lose to EIC.
Result: Diwani rights of Bengal, Bihar, Orissa granted 1765 ⇒ Company funds wars & trade using Indian revenue.

Mir Jafar/Mir Qasim alternated; heavy monthly payments demanded.
Company officials amass personal fortunes; return to Britain as wealthy “nabobs”.

Residents: Company agents dominate succession & administration.
Subsidiary Alliance (Wellesley 1798–1805): Indian ruler keeps no independent army; pays for EIC troops; default ⇒ cession of territory (Awadh 1801, Hyderabad etc.).
Direct wars when interests threatened:
• Mysore Wars (four rounds 1767–1799) ➔ death of Tipu Sultan at Shrirangapatnam, subsidiary alliance on Wodeyars.
• Anglo-Maratha Wars (I 1775–82, II 1803–05, III 1817–19) ➔ Peshwa pensioned, EIC dominates south of Vindhyas.
• Sikh Wars after Ranjit Singh’s death ➔ Punjab annexed 1849.
Doctrine of Lapse (Dalhousie 1848–56): no natural heir ⇒ state “lapses” (Satara, Sambalpur, Udaipur, Nagpur, Jhansi, Awadh 1856).
Policy of Paramountcy (Lord Hastings 1813–23): Company’s supremacy justifies annexation.

Presidencies: Bengal, Madras, Bombay; head = Governor; overall head = Governor-General (first: Warren Hastings 1773–85).
Judicial changes 1772: district Diwani Adalat (civil) & Faujdari Adalat (criminal); Indian laws compiled (Hindu 1775, Muslim 1778); Supreme Court (Regulating Act 1773).
Collector becomes key district authority: revenue, law & order.

Sepoy army (sipahi) recruited from peasants; shift from cavalry dominance to infantry with muskets/matchlocks (post 1820s).
European-style drill, uniforms, discipline imposed; caste/religious practices ignored ⇒ simmering discontent (erupts 1857).

Direct Company rule: ≈ 63\% territory, 78\% population.
Steamships reduce Britain–India voyage to \approx3 weeks ⇒ easier control & migration.
EIC transformed from trading venture to sovereign colonial power, setting stage for the 1857 revolt and eventual British Crown rule.