In-Depth Notes on Governing British India

Governing British India

EIC Commercial Structure

  • The East India Company (EIC) initially operated under the Mughal imperial system, ensuring a secure framework for trade.

  • Europeans could impose their trade terms only at sea or with smaller Asian regimes. (Marshall, p.489)

  • Josiah Child (1630-99), the Governor of the EIC, aimed to establish permanent colonial settlements.

Indian Imports Over Time

  • 1697: £263,000

  • 1712: £457,000

  • 1744: £743,000

  • 1748: £1,098,000

  • 1760: £1,786,000

  • 1763: £1,059,000

  • 1776-80: £1,303,000

  • 1781-85: £2,030,000

  • 1791-95: £4,024,000

  • 1795-1800: £4,834,000

The 'Nabobs' and Corporate Influence

  • The British Parliament had significant interests in the EIC's operations.

  • The Deregulating Act of 1694 allowed English companies to trade with India, nullifying the EIC's monopoly.

  • A 'parallel' EIC was approved in 1698, which the original company later dominated.

  • Both companies merged in 1702, forming a tripartite indenture involving both companies and the state.

Key Figures: Thomas ‘Diamond’ Pitt

  • President of Fort St George (Madras) from 1698-1709.

  • Member of Parliament.

  • Acquired a diamond (410 carats) around 1701, which he sold to Duke Philippe II of France.

  • The sale financed his estate and linked to the Pitt political legacy.

Commerce to Conquest

Battle of Plassey (1757)

  • Led by Robert Clive, the British reclaimed Calcutta from Siraj-ud-Daula.

  • Bengal became a client state with a new Nawab under British protection.

Battle of Buxar (1764)

  • The EIC secured civil administration over Bengal and surrounding provinces.

  • Established British dominion over 20 million people and received a revenue of £3 million after the 'Diwani' was granted in 1765 (the right to tax).

The Regulating Act of 1773

  • Lord North aimed to reform EIC management.

  • Key Provisions:

    • Establishment of a Governor-General and a council of four for the presidency of Fort William in Bengal.

    • Creation of a Supreme Court in Fort William for all British subjects in Bengal.

    • Prohibition for British officials in India from accepting gifts or financial advantages.

Adam Smith's Critique

  • Adam Smith noted the contradiction between the trading role and sovereign power of the EIC, implying neither was performed well due to conflicting interests.

Sir William Jones' Perspectives

  • Advocated for collaborative efforts in research and improvement in India, emphasizing the diverse cultural landscape and the need for scientific and social progress.

The India Act of 1784

  • Key provisions separated trading from governance:

    • Established a Board of Control to oversee Company activities.

    • The Crown obtained veto power over Company appointments.

    • The Governor-General held absolute power over presidencies.

    • Established English Courts for crimes committed in India.

    • Corporations returned 'nabobs' had to declare their profits.

  • This dual control system persisted until the Indian Mutiny, after which Parliament assumed full responsibility for India.

The Impact of Famine

  • Description of severe famine conditions by William Roxburgh highlighting the dire need for agricultural development and humanitarian aid.

  • Emphasized the profitability and social benefits of shifting to indigo production to provide employment during times of scarcity.

James Mill and Economic Philosophies

  • Connected with the Ricardian school of political economy.

  • Authored "History of British India" (1817).

  • Father of prominent philosopher John Stuart Mill.

Thomas Macaulay’s Vision

  • Suggested that good governance could educate Indians for better self-governance potentially aligning with European institutions, highlighting a long-term vision for India.

The Opium Wars

  • Opium history: Used traditionally as medicine, later cultivated for trade.

  • The EIC monopolized opium from Bengal by 1773, selling it in Calcutta and exporting it to China, fueling the opium trade.

  • Resulting in two major conflicts:

    • First Opium War (1839-42): Britain seized Hong Kong and opened Chinese markets to British drug trade.

    • Second Opium War (1856): A joint victory of Britain and France against China.

Challenges of Governance

  • The EIC struggled to govern the large area of British-controlled territories.

  • Increasing military and administrative costs due to a decline in productive labor in Bengal, influenced by both economic and social reforms initiated post-Industrial Revolution.