The Role of the East India Company

Why was it created?

idea emerged late in Elizabeth I’s reign

England wanted access to profitable Far East trade as their trade in the region was limited

Dutch VOC dominated trade in the first half of 17th century as they controlled key trade routes (Malacca and Sunda straits) and spice islands (Moluccas)

Royal Support

1600 - Crown apporved the creation of the EIC established by Royal Charter as a joint-stock company

given the controversial right to export bullion (gold and silver)

Growth in India

1615 - Thomas Roe secured trade agreement with the Mughal Emperor Jahangir

the EIC traded in:

• cotton, silk, indigo and spices

1623 - Amboina Massacre when Dutch killed English traders → pushed England away from spice islands toward Indian trade

1661 - Bombay gained by England

→ growing English commercial influence and helped lay foundations for English expansion in India

Significance of the EIC

1672 - EIC began to mint coins in India, laying the foundations for the production of the Rupee in 1675

1670s - the EIC were given a private army to protect English citizen and trading interests

as Charles was indebted to the EIC, any financial irregularities went unnoticed

by 1688, profits from trade in India equaled or exceeded those from Caribbean trade (£600k compared to £100k between 1600 and 1640)

→ EIC was crucial to the advancement of trade in the Far East and the English’s trade dominance