The Rise of the British East India Company

Background (1600-1608)

• Founded by merchants in 1600 as a Joint Stock Company
• Initial capital: £70,000 raised by 125 shareholders
• Purpose: trade in spices, initially in Indonesia
• Faced stiff competition from established Spanish, Portuguese, and Dutch traders
• In 1608, aimed to shift focus to India due to strong Dutch competition

Early Activities in India (1608-1615)

• 1608: EIC traders land in Surat, India under Mughal rule
• Tried to establish trade but were denied by Mughal Emperor Jahangir due to Portuguese influence
• 1611: Established their first factory in Machlipatnam, Andhra Pradesh
• 1612: Battle of Swally, defeated Portuguese influence in Surat
• 1615: Diplomat Sir Thomas Roe secures trade permissions from Jahangir

Expansion and Monopoly Formation (1615-1670)

• Established factories in several cities: Surat, Madras, Ahmedabad, Bombay, Agra, Patna
• Trades in cotton, indigo, silk, salt, opium, and tea
• Gains monopoly in these cities by building fortified bases

Rise of Political Aspirations (1670-1686)

• 1670: English King Charles II grants EIC rights to acquire territory, hold political power, mint money, and have a private army
• 1686: EIC declares war against Mughal Emperor Aurangzeb under Governor Josiah Child
• Result: EIC defeated, fined heavily but trading privileges restored

Strengthening and Opportunism (1707-1717)

• 1707: Death of Aurangzeb leads to weak Mughal Empire and power struggles
  • Local Nawabs, Marathas, Rajputs, etc., gaining control of regions
  • EIC strengthens its army, recruits Sepoys (Indian soldiers)
• 1717: Mughal Emperor Farrukhsiyar grants tax-free trading rights in Bengal
• Manipulated newly given Dastak system for tax-free trading to financially weaken the Mughals

Conflicts and Wars (1740-1764)

• 1740-1748: Enmity between France and Britain leads to conflicts in India
• 1756: Siraj-ud-Daulah becomes Nawab of Bengal and attacks EIC, leading to Black Hole Tragedy
• 1757: Battle of Plassey - EIC, led by Robert Clive, defeats Siraj-ud-Daulah with help from Mir Jafar and other local alliances
• Post-Plassey: EIC places puppet Nawabs in Bengal, benefiting from local alliances and conflicts
• 1764: Battle of Buxar - EIC defeats the alliance of Mir Qasim, Nawab of Awadh, and Mughal Emperor Shah Alam II

Consolidation and Expansion Techniques (1765-1818)

• 1765: Treaty of Allahabad - EIC granted Diwani Rights in Bengal, EIC becomes ruler of Bengal
• EIC uses Residents to form alliances and interfere in politics
• Implemented Subsidiary Alliances to control local rulers' armies and revenues

Further Expansion (1798-1856)

• Subsidiary alliance with various states including Hyderabad (1798)
• Doctrine of Lapse (1847): Territories without a direct heir annexed by EIC
• EIC defeats Maratha Empire and Mysore Kingdom by early 1800s

End of EIC and Start of British Raj (1857-1858)

• 1857: Indian Revolt (First War of Independence)
• 1858: British nationalizes EIC under the Government of India Act
• 1874: Dissolution of EIC
• End of Mughal Empire: Last emperor Bahadur Shah Zafar exiled

Conclusion

• EIC’s long-lasting impact on the Indian subcontinent and the eventual establishment of British colonial rule.