2.From Trade to Territory The company Establishes Power History class 8 Notes

East Indian Company East

·        In 1600 royal charter granted to east India Company granting the sole right to trade with the east.

·        East India Company Bought goods at a cheap prince and sold them at higher price and sold them at higher prince in Europe.

·        Cotton and silk produced in India had a big markets in Europe.

·        Pepper,Cloves,cardamom and annamon were in great demand.

East India Company Begins trade in Bengal

·        In 1651 the first English factory was set up on the banks of river Hugi.
·        Aurangzed issued a farman granting the company the right to trade duty free.
·        The company tried to press more concessions And manipulate existing privileges.

How Trade Led to Battles

·        After the death of Aurangzed the Bengal Nawadas asserted their power and automy.
·        The Nawabs of Bengal refused to grant the company concessions.

The Battle Of Plassery

·        On 23rd june 1757, Battle of Plassery was through and was the frist major victory of English in India.

·        Alivardi khan died in 1756 and Sirajuddaulah became the nawab of Bengal.

·        In 1757,Robert Clive led the company,s army against Sirjuddulah at Plassey.

·        Main reason for defeat of the Nawab was that the forces led by Mir Jafar one of Sirajuddaulah,s commanders , never fought the battle

·        Mir Jafar was promished by clive to be made Nawab after crushing Sirajuddaulah.

The Battle of Buxar

·        After the defeat at Plassey,Sirajuddaulah was assassinated and Mir Jafar made the nawab.
·        Mir Jafar was just a puppet in the hands of Britishers.
·        In 1764 the battle of Buxar was fought between Britisher and Mir Basin.
·        In 1765 Mir Jafar Died.
·        In 1765 the Mughal emperor appointed the company as the Diwan of the provices of Bengal.

Company Official become” Nabobs”

·        After the Battle of Plassery the actual nawabs of bengal were forced to give land and vast sums of money as personal gofts to company officials.
·        Many company officials like Clive made vast wealth however, not all company officials succeded in making money.
·        Those who managed to retrun Britain with wealth led flashy lives and flaunted the riches.They were called”Nabobs” an anglicised version of the Indian word Nawab.


Company Rule Expands

 ·        The process of annexation of Indian states by the East Indian Company from 1757 to 1857 brought forth some kry aspects like the company rarely launched a direct militrary attack on as unknown territory.

·        After battle of buxar, the company appointed residents in Indian states.

·        The company forced the states into a ‘Subsidiary alliance’

·        The Nawabs of Awadh and the Nizam of Hyderbad were forced to cede territories and accept the subsidiary alliances.

Tipu Sultan-The “ Tiger of Mysore”

·        Tipu Sultan was the son of Haider Ali ruler of Mysore.

·        Tipu Sultan ruled Mysore from 1782 to 1799.

·        Four wars were fought between Britishers and Mysore and were know as the Anglo-Mysore wars ( 1767-1769,1780-84,1790-92 and 1799 )

·        In 1799 the Britishers won the battle of Seringapatam against Mysore.

·        Tipu Sultan was killed defending his capital Seringapatam.

Wars With the Marathas

·        After the defeat in the Third Battle of panipat in1761,they were divided inti many states under different chiefs( sardars ) belonging to dynasties such as Sindhia,Holkar,Gaikwad and Bhonsle.

·        These chiefs were help together inh a confedercey under a Peshwa ( Principal Minister)

·        Anglo-Marathas war fought between these and the company.

·        The first war that ended in 1782 with the treaty of Salbai,there was no clear victor.

·        The second Anglo-Maratha war (1803-05 ) resulting in the British gaining Orissa and the Territories north of the Yamuna rivers including Agro – and Delhi.

·        Third Anglo-Maratha war of 1817-19 crushed Maratha power.

The Claim to Paramountcy

·        Under Lord Hasting ( Governor General from 1813 to 1823) a new policy of ‘paramountcy’ was initiated which claimed its power was greater than that ofIndian States.

·        In orders to protect its intersts it was juslified in annexing or threatening to annex any Indian Kingdow.

·        In the late 1803s the East India Company became worried about Russia as Russia might expand across Asia and enter India from the North-West.

·        The fought a prolonged war with Afghanistan between 1838 and 1842 and established indirect Company rule there.

·        After the death of Maharaja Ranjit Singh in 1839 two prolonged wars fought with the Sikh kingdom and in 1849 Punjab was annexed.

The Doctrine of Lapse

·        Lord Dalhousie the Governor-General from 1848 to 1856 devised a policy that came to be know as the Doctrince of Lapse.

·        It declared that if an Indian ruler died without a make their his kingdom would ‘lapse’ that is become parts of company territory.

·        Many kingdoms were annexed under this rule.

·        Satara in -1848

·        Sambalpur in -1850

·        Udaipur in – 1852

·        Nagpur in – 1853

·        Jhansi in -1854

·        Awadh in 1858

Setting up a New Administration.

·        Waren hastings ( Governor – General From 1773 to 1785 ) played a significant role in the expansion of company power.

·        British territories were broadly divided into administrative units called Presidencies.There were three Presidenciens

1.      Bengal

2.      Madras

3.      Bombay

·        Each was ruled by a Governor and the supreme head of the adminstration was the Governor General.

·        From 1772 a new system of Justice was established.

·        Each district was to have two courts.

1.      A criminal court ( Faujdari adalat )

2.      A civil court ( duivani adalat)

·         In civil court,Maulvis and Hindu pandits interpreted India laws for the European District Collectors.

·        The criminal courts were still under a qazi and a mufti but under the supervision of the collectors.

The Company Army

·        From the 1820s, the cavalry requirements of the Company’s army declined because the British empire was fighting in Burma,Afghanistan and Egupt where soldiers were armed with muskets and matchlocks.

·        In the early nineteeth centry the British began to develop a unifrom military ailture .

·        The Soldiers were given European – style training and were Subjected to drill and discipline.


·        The East India Company was transformed from a tredling company to a territorial colonial power.

·        By 1857 the company came to exercise direct rule over 63 percent of the territory and 78 percent of the population of the Indian subcontinent.

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