From Traders to Rulers: Detailed Notes
HISTORY
From Traders to Rulers
Decline of the Mughal Empire
After Aurangzeb's death in 1707, the Mughal Empire gradually declined. New regional powers emerged, and by the mid-18th century, Mughal rule was limited to the regions around Delhi.
Emergence of the English East India Company
The English East India Company became a major contender for political supremacy in India. Initially focused on profitable trade, the Company's agents realized the necessity of having a friendly prince, requiring military protection and control over them (as noted by Nirad Chaudhuri in Clive of India).
Queen Elizabeth I and the Royal Charter (1600)
In 1600, Queen Elizabeth I granted the East India Company a monopoly to trade with India through a charter, preventing other English trading groups from competing. This charter allowed the Company to venture across the seas to buy goods cheaply and sell them in Europe at higher prices.
Competition from Other European Powers
Other European powers were already present in India. The Portuguese had arrived in 1498 and established settlements in Goa, Daman, and Diu, controlling the seas with their navigational skills. The Dutch had trading centers at S
urat, Broach, Nagapatam, and Chinsura in Bengal but were more interested in the Spice Islands. The English ultimately ousted the Portuguese and Dutch.
Mercantilism and Rivalry
The 17th and 18th centuries saw intense competition for maritime trade. Countries adopted mercantilism, framing economic policies to protect their overseas trade interests. England allowed goods to be imported only in English ships, regulating the type of goods entering the country. This led to wars and rivalry among England, Holland, and France, with the English emerging victorious due to their naval supremacy.
English Trading Settlements
The first English factory in Bengal was established at Hugli in 1651 with permission from Sultan Shuja. Factories later sprang up at Kasimbazaar and Patna. These factories were offices and warehouses for trade, becoming centers for international trade in spices, cotton, sugar, raw silk, calico, and indigo. In 1668, the Company acquired Bombay from King Charles II and established factories in Ahmedabad, Agra, Masulipatnam, Dacca, and Balasore. In 1698, they acquired the zamindari of Sutanati, Kalikata, and Govindpur, which later became Calcutta.
Fortification and Political Ambitions
The Company fortified settlements at Bombay, Madras, and Calcutta for safety, security, and to maintain a monopoly, using force against Indian rulers and foreign rivals. The Company aimed to establish political power in India to compel the Mughals to allow free trade, force Indians to sell goods cheaply, exclude rival European traders, appropriate Indian revenues, and conquer the country using its own resources.
Conflict with the Mughals
In 1686, hostilities broke out after the English sacked Hugli and declared war on the Mughal Emperor. The Mughals, under Aurangzeb, were too strong for the Company. The English were deprived of their factories in Bengal, Surat, and Masulipatnam, and their fort at Bombay was besieged. The English then sought to trade under the protection of Indian rulers. Aurangzeb permitted them to resume trade upon payment of as compensation because foreign trade benefited Indian artisans and merchants.
Farman of Farrukhsiyar (1717)
In 1717, the Company secured a farman from Emperor Farrukhsiyar, confirming privileges granted in 1691 and extending them to Gujarat and the Deccan. This granted the company freedom to export and import goods in Bengal without paying duty or taxes and the right to issue passes or dastaks for movement of goods. However, strong nawabs like Murshid Quli Khan and Alivardi Khan controlled English traders and prevented misuse of privileges, restricting fortifications and independent rule in Calcutta.
British Conquest of Bengal
Bengal was the richest province, with well-developed industries and commerce. The farman allowed the Company to export and import goods without taxes, but Company servants also traded and were supposed to pay taxes like Indian merchants. This was a conflict source. Siraj-ud-daulah demanded that the English trade as in the time of Murshid Quli Khan, but they refused, levying duties on Indian goods entering Calcutta. This angered the nawab, who suspected the Company of favoring his rivals. The Company began fortifying Calcutta without permission, leading Siraj-ud-daulah to order the demolition of fortifications, which the English refused, challenging the nawab's sovereignty.
Battle of Plassey (1757)
Siraj-ud-daulah seized the English factory at Kasimbazaar and occupied Fort William in Calcutta on June 20, 1756. Robert Clive reconquered Calcutta in 1757 and compelled the nawab to concede English demands. The English decided to place Mir Jafar on the throne, presenting impossible demands to Siraj-ud-daulah. The Battle of Plassey occurred on June 23, 1757, with Mir Jafar's forces not participating. Siraj-ud-daulah fled and was killed. Mir Jafar became the new nawab, granting the British undisputed tax-free trade and a huge sum as war compensation. The East India Company's servants collected gifts worth 30 million rupees and received the zamindari of the 24 Parganas near Calcutta.
Significance of Plassey
The Battle of Plassey paved the way for the English conquest of Bengal and India, transforming the Company into a political power. Bengal's revenues enabled them to organize a strong army and conquer the rest of the country. The Company aimed to control Bengal's wealth through the nawab.
Mir Jafar and Mir Qasim
Mir Jafar couldn't meet the increasing demands of the Company, leading them to criticize him. In October 1760, they forced him to abdicate in favor of his son-in-law, Mir Qasim, who granted the Company the zamindari of Burdwan, Midnapore, and Chittagong. Mir Qasim, an able ruler, sought to maintain independence by building a full treasury and efficient army. The English disliked his attempts to check the misuse of the 1717 farman by Company servants demanding tax-free trade. Mir Qasim abolished taxes on internal trade for all, which the East India Company could not tolerate.
Battle of Buxar (1764)
After the Battle of Plassey, Mir Qasim and his allies (the Nawab of Oudh, Shuja-ud-daulah, and Shah Alam II) fought against the British. The allies were defeated at Buxar, a decisive battle in Indian history that made the East India Company masters of Bengal, Bihar, and Orissa. Mir Jafar was reinstated, and after his death, Nizam-ud-daulah was placed on the throne, signing a new treaty in 1765.
Diwani Rights
The Mughal Emperor Shah Alam II handed over the right to collect Diwani or land revenues in Bengal, Bihar, and Orissa to the British, legalizing their hold over Bengal. The Company agreed to pay 26 lakhs annually to him and secured the diwani of Kara and Allahabad. The Nawab of Oudh paid a war indemnity of five million rupees; the Company promised to support him, making him dependent on them.
Dual System of Administration (1765-1772)
After Buxar, Robert Clive introduced the Dual System, where the Company had jurisdiction power, and the Nawab of Bengal had administrative responsibility. The Company collected revenues as diwani and controlled nizamat through Reza Khan. The system failed, leading to administrative breakdown, economic disorder, and high revenue collection. Cottage industries suffered, Company servants increased raw material prices, artisans left their occupations, and the Company's servants amassed wealth. In three years, £ million was drained from Bengal. In 1770, a famine wiped out one-third of the population, exacerbated by the Company's policies, and no relief was provided. Warren Hastings ended the dual government in 1772, bringing Bengal under direct Company control.
Company Officials Termed 'Nabobs'
The Company's servants exploited Bengal, leading to anarchy, bribery, corruption, and extortion, with fortunes acquired unjustly. The British government ordered the Company to pay it £ per year in 1767. Officials who amassed great wealth were called 'nabobs,' an anglicized version of the Indian word nawab. Clive's fortune was £ when he left India in 1767. He was later impeached but acquitted and committed suicide in 1774.
Expansion of the British Empire
After the Battle of Buxar (1764), the Company appointed Residents in Indian states, serving as political or commercial agents. Under Lord Wellesley, the Company aimed to bring as many Indian states as possible under British control using Subsidiary Alliances. Indian rulers were forced to accept British forces within their territory and pay a subsidy. Sometimes, rulers ceded territory instead of paying. The treaties prohibited employing Europeans without British approval and negotiating with other Indian rulers without consulting the Governor-General. In return, the British promised to defend the ruler but often interfered in internal affairs. By signing a Subsidiary Alliance, Indian states virtually lost independence.
Subsidiary Alliances
Lord Wellesley signed subsidiary treaties with the Nizam of Hyderabad in 1798 and 1800, and the Nawab of Oudh in 1801. The Nawab of Oudh surrendered nearly half his kingdom.
Tipu Sultan (Tiger of Mysore)
Tipu Sultan, ruler of Mysore, banned the export of sandalwood and spices through his ports in 1785 and sought French cooperation. This angered the Company. Tipu and his father, Haider Ali, defeated the British in the First (1767-69) and Second Anglo-Mysore Wars (1780-84), negotiating the treaty of Mangalore. The British allied with the Nizam of Hyderabad and the Marathas, leading to the Third Anglo-Mysore War (1790-92), in which Tipu was defeated. In the Fourth Anglo-Mysore War in 1799, Tipu Sultan was killed during the battle of Seringapatam. His dominions were divided between the British and the Nizam. The kingdom of Mysore was restored to the Wodeyars, and a Subsidiary Alliance was imposed. In 1801, Lord Wellesley forced the Nawab of Carnatic to cede his kingdom for a pension.
The Marathas
The Marathas were the last major power outside British control, consisting of a confederacy of five chiefs: the Peshwas, the Gaekwads, the Sindhias, the Holkars, and the Bhonsles. Wellesley offered subsidiary alliances to the Peshwa and Sindhia, which Nana Phadnavis refused.
Anglo-Maratha Wars
In 1802, Holkar defeated the combined armies of the Peshwa and Sindhia. Peshwa Baji Rao II signed the subsidiary treaty of Bassein in 1802. Sindhia and Bhonsle fought the British, while Holkar stood aside, and Gaekwad helped the British. The British defeated Sindhia and Bhonsle at Assaye in September 1803 and at Argaon in November. Lord Lake routed Sindhia's army at Laswari and occupied Aligarh, Delhi, and Agra. Sindhia and Bhonsle became subsidiary allies, ceding territory and admitting British residents. The British gained control over Orissa and the territories between the Ganga and Yamuna. Wellesley was recalled, and the Company made peace with Holkar in January 1806.
Expansion under Lord Hastings
The Second Anglo-Maratha War shattered the Maratha chiefs' power. They attempted to regain independence in 1817. The Governor-General, Lord Hastings, defeated the armies of the Peshwa, Bhonsle, and Holkar. The Peshwa was dethroned and pensioned off. By 1818, the entire Indian subcontinent, except Punjab and Sindh, was under British control. Under Lord Hastings (1813-23), a policy of 'Paramountcy' was begun, claiming British authority was supreme.
Conquest of Sindh
The conquest of Sindh occurred due to Anglo-Russian rivalry. Sindh was annexed in 1843 by Sir Charles Napier.
Conquest of Punjab
The death of Maharaja Ranjit Singh in June 1839 led to political instability. In the First Anglo-Sikh War, the British defeated the Sikhs and occupied Lahore. The treaty recognized Dalip Singh as king and Rani Jindan as Regent. In the Second Anglo-Sikh War, Lord Dalhousie declared war on the Sikhs. Punjab was annexed in 1849, and Dalip Singh was pensioned off.
Doctrine of Lapse
Lord Dalhousie implemented the 'Doctrine of Lapse,' annexing states without a natural heir unless the adoption was approved by the British authorities. States annexed included Satara (1848), Sambalpur (1850), Udaipur (1852), Nagpur (1853), and Jhansi (1854).
Annexation of Oudh
Lord Dalhousie annexed Oudh in 1856, accusing Nawab Wajid Ali Shah of misgovernment, leading to the revolt of 1857.
New Administration
Warren Hastings, Governor-General of Bengal (1773-1785), introduced administrative reforms. British territories were divided into Presidencies: Bombay, Bengal, and Madras, each ruled by a Governor. A new judicial system was established in 1772, with civil (Diwani Adalat) and criminal courts (Faujdari Adalat) in each district. European district collectors presided over civil courts, assisted by Maulvis and Hindu pandits. In 1775, Hindu laws were compiled into a digest. Under the Regulating Act of 1773, a new Supreme Court was set up.
The Collector
The most important figure in an Indian district was the Collector, responsible for collecting revenue and taxes and maintaining law and order. His office, the collectorate, became the center of power.
The Company Army
The British army was the instrument through which Indian powers were conquered, defended the British Empire, safeguarded British supremacy, and extended the British Empire in Asia and Africa. In 1857, the army in India numbered 311,400, of whom 265,900 were Indians. The army was officered entirely by British officials, although most of the troops were Indian because this was more cost-effective. The army helped the Company protect its trade, defend the empire, extend its territory, and put down internal rebellions. The army was well-equipped and trained. In the nineteenth century, the British began to develop a uniform military code. The soldiers were subjected to European style training, drill, and discipline, which created problems because caste and community feelings were ignored. Steam ships reduced journey time enabling British and their families to live in India.