From Trade to Territory

After the Battle of Buxar, the Company got the diwani rights; thus, acquired more power and authority. Many of the British merchants or administrators came from humble background and wanted to amass huge wealth in India, return to Britain and aspire to be recognised as having the higher social status that their new wealth would enable them to maintain and lead a comfortable life. These officers were called ‘nabobs’ an anglicised version of the Indian word nawab.

In 1820s, the British empire was fighting in Burma, Afghanistan and Egypt where soldiers were armed withmuskets and matchlocks. In order to keep pace with the changing military requirements, infantry regiments became important. This decreased the cavalry requirements of the army.

Warren Hastings played an important role in the expansion of the British power in India. His management of the company's commercial concerns was particularly commended. He was the first Governor-General of India, who occupied that high position from 1773 to 1784. He introduced various administrative reforms, notably in judiciary.

Collector was a principal figure in an Indian district. He was the head of the Revenue department in the district and was also responsible to maintain law and order in his district. In this he was helped by judges, police officers and darogas. His office was known as the Collectorate. It soon became the centre of power and patronage.

In 1820s, the British empire was fighting in Burma, Afghanistan and Egypt where soldiers were armed withmuskets and matchlocks. In order to keep pace with the changing military requirements, infantry regiments became important. This decreased the cavalry requirements of the army.

The Regulating Act of 1773 was the turning point in the Constitutional history of India. Under this Act, the government at Calcutta was reorganised and a new Supreme court was established in Calcutta. A court of appeal – the SadarNizamatAdalat – was also set up at Calcutta.

Following steps taken by Tipu to strengthen his position infuriated the British -

1. He formed an alliance with the French in India. He modernised his army with the help of the French.
2. He formed an alliance with the Marathas and Mughals.
3. Local merchants were not allowed to trade with the Company.
4. Exports of spices and sandalwood from the ports of his kingdom were stopped.

British residents were appointed in Indian state. They were the political or commercial agents of the Company. They were entrusted to serve and promote the interests of the Company. Through these residents, the Company official started interfering in the internal matters of the Indian states.

Queen Elizabeth I of England gave permission to the East India Company to establish trade relations with the East.

1. The annexation of the Indian states abolished the administrative machinery of each state.
2. Many craftsmen who depended on state patronage were also ruined.
3. A number of soldiers under the armies of the Indian ruler were thrown out of the army and became unemployed
4. Most of states were either annexed or entered into a subsidiary alliance, where they were economically exploited by the British.

11. 1. Hyder Ali and Tipu Sultan, as rulers of Mysore were enlightened and broadminded in religious matters.
2. They also helped in the construction of temples belonging to Hindus.

A business enterprise that makes profit through trade, buying goods at cheaper rates and selling them at higher prices.

Doctrine of lapse was an act introduced by Lord Dalhousie, Governor General of India (1848-1856). The doctrine declared that in case ruler of a subsidiary state died without any natural heir his state would “Lapse” or become part of the English East India Company's Empire. Due to this act many Indian states such as Satara, Sambhalpur, Nagpur, Kanpur, Jhansi were annexed into English East India Company's Empire. This caused fear and suspicion among Indian rulers that very soon English East India Company would annexe their state also by one reason or another.

James Mills mentioned that the resident appointed in the court of state under the subsidiary alliance worked as the real king. The ruler had to work according to the wishes of the resident who interfered in all matters of administration. Because of the resident the Company was able to execute her policies without direct interference.

Lord Hastings made changes in the company’s policies. After the Battle of Plassey, the Nawabs of Bengal were forced to give Diwani Rights to the Company.Robert Clive, the British Governor-General was successful in making the Company’s property worth £ 401,102. From the early nineteenth century the Company pursued an aggressive policy of territorial expansion. Lord Hastings had initiated a new policy of “paramountcy”.The Company claimed that its authority was greater than that of Indian states. In order to protect its interests it was justified in annexing or threatening to annex any Indian kingdom

Sirajuddaulah was easily defeated because the Murshidabad Darbar faction secretly opposed the young Nawab. Jagath Seth was the leader of conspiring faction of the court. They followed a secret treaty with the conspirators confirming all the privileges and compensations claimed by the English. Most of the nawab's army remained firmly still at the instance of Mir Jafar and other conspirators. Sirajuddaulah was defeated and later slain by Mir Jafar's son, Miran.

The main principles of the treaty of Subsidiary Alliance System were:

1. The Indian rulers who were invited to accept the Alliance were expected not to fight or keep any contact with any other power without the permission of the British.
2. To maintain internal peace and order in a Subsidiary state, the British would station an army under the control of the British Generals.
3. To meet the cost of army expenses, an Indian state would either surrender a portion of its territory to the Company.
4. The subsidiary state had to keep a resident of Company in their court, who indirectly affect the decisions and policies of the state.
5. In return, the Company would protect all the Subsidiary states irrespective of their size, against external invasions.

With the defeat in the Third Battle of Panipat the dream of the Marathas of ruling from Delhi was completely shattered. The main consequences were:
1. Maratha's dream of establishing their rule in north India was shattered and their power was completely ruined.
2. Many able generals/ sardars of Marathas died in the war and their states were further divided into five separate regional centres The defeat of Marathas gave the British East India Company a free passage in India to establish itself as a paramount power.

After the death of Aurangzeb, the authority of the Mughal Empire began to decline due to following reasons:
1. The successors of Aurangzeb were not the able administrators.
2. The revolts of the Jats, the Sikhs, the Rajputs and the Marathas caused disintegration of the Mughal Empire.
3. The emergence of the British as a power was also one of the reasons for the decline of the Mughal Empire.Delhi no longer served as an effective centre

The conflict between Sirajuddaulah and the English intensified due to a number of factors:
1. British interference in the political affairs of the nawab. Sirajuddaulah wanted to maintain his independence.
2. Fortification of British settlements and non payment of revenues by Company officials who carried on private trade.

The East India Company in 1600 acquired a charter, grating it the sole rights to trade with the east. The company did not have any fear of competition from the other mercantile companies. The first factory was set up on the banks of Hugli in Calcutta in 1651. This was the base from where the company officials operated. The factory also had a warehouse where goods for export were stored. In 1698, the company officials bribed the Mughal officials to give them zamindari rights over the three villages. This also persuaded Aurangzeb to issue a farman granting them duty free trading rights. The company kept pushing for privileges, concessions and kept manipulating the existing privileges.

The demand of Indian goods in European countries.
Indian goods could be purchased in low prices and could be sold at very high prices in the European markets