2 From Traders to Rulers After Aurangzeb’s death in 1707, the Mughal But, other European Empire gradually declined. New regional powers Natives had already entered emerged and by the mid-18th century Mughal rule India and the Royal Charter continued only in the regions around Delhi. had no power against them. At this time the English East India Company The Portuguese had already emerged as the chief contender for political supremacy reached India in 1498, in India. “The East India Company wanted only even before Babur came IDFLOLWLHV WR FDUU\ RXW WUDGH SURÀWDEO\ EXW LWV DJHQWV here and much before the in India saw that it was impossible to have these East India Company was IDFLOLWLHVZLWKRXWDSULQFHIULHQGO\WRWKHPKHKDGWR granted a charter. They had established their settlements be given military protection to remain on the throne Queen Elizabeth-I and this could not be given without some control in Goa, Daman and Diu. The over him.” (Nirad Chaudhuri in, Clive of India ). How Portuguese were able to control the seas because of then did they come to be masters of a vast empire? their high navigational skills. But they were ousted In this chapter you will see how this came about. from their possessions because of competition from the Dutch and the British. The Dutch had established THE ENGLISH EAST INDIA COMPANY their trading centres at Surat, Broach, Nagapatam In 1600, Queen Elizabeth I granted the East and Chinsura in Bengal. But they were more India Company the monopoly to trade with India interested in the Spice Islands. After an agreement through a charter. This meant that no other trading with the British, they gave up all claims on India group in England could compete with the East to concentrate on the Spice Islands. Soon the French India Company. With the help of this charter, the traders arrived on the scene. They established their Company could venture across the seas looking trade settlements at Pondicherry (now Puducherry), for new lands from where it could buy goods at a Mahe, Chandernagore and Karaikal. Dupleix, the cheap price and carry them back to Europe to sell Governor-general at Pondicherry, played a major at higher prices. role in the expansion of French power in India. ƵƚĐŚƐĞƩůĞŵĞŶƚŝŶ/ŶĚŝĂ 13 During the seventeenth and eighteenth centuries, in Ahmedabad, Agra, Masulipatnam, Dacca and there was a stiff competition for control over Balasore. In 1698, they acquired the zamindari of maritime trade. The rulers of these countries framed three villages – Sutanati, Kalikata and Govindpur. economic policies to protect their overseas trade The villages soon grew into a city which came interests against foreign competitions. This policy WR EH NQRZQ DV &DOFXWWD 7KH &RPSDQ\ IRUWLÀHG was called mercantilism . The English allowed goods settlements at Bombay, Madras and Calcutta. The to be imported into England only in English ships. objective behind this was safety, security and to This enabled the English to regulate the type of maintain a monopoly. For this, they used force goods entering England. against the Indian rulers and their foreign rivals. Mercantilism led to intense rivalry among Indian exports were increasing and, therefore, the countries. It resulted in wars on land and seas. Indian rulers encouraged the East India Company’s In the 17th century, England, Holland and France factories in India. were trade rivals in Europe. In India, they competed The Company now dreamt of establishing ZLWK WKH 3RUWXJXHVH 7KH (QJOLVK ÀQDOO\ HPHUJHG political power in India. This would enable it to victorious due to their supremacy at sea. compel the Mughals to allow it a free hand in trade, The reason for rivalry was that all the companies to force the Indians to sell its goods at cheap rates wanted to buy the same commodities. The cotton and and to keep the rival European traders out. Political silk produced in India had a big market in Europe. power would also make it possible to appropriate Similarly, spices such as pepper, cloves, cardamoms Indian revenues and to conquer the country with its and cinnamon too were in great demand. The only own resources. ZD\ WKH WUDGLQJ FRPSDQLHV FRXOG ÁRXULVK ZDV E\ In 1686, hostilities between the English and the reducing competition. This urge to secure markets Mughal emperor broke out after the former had OHG WR ÀHUFH EDWWOHV EHWZHHQ WKH WUDGLQJ FRPSDQLHV sacked Hugli and declared war on the Emperor. The Throughout the 17th and 18th centuries, they sank Mughal empire under Aurangzeb was more than a each others ships, blockaded the sea routes and match for the petty forces of the East India Company. prevented the rival ships from moving with supplies. The war ended disastrously for them. They were Trade was now carried on with arms and trading deprived of their factories in Bengal. Their factories SRUWV ZHUH IRUWLÀHG 7KLV HIIRUW WR FDUU\ RQ WUDGH at Surat, Masulipatnam were seized and their fort at ZLWKDUPVJDYHULVHWRFRQÁLFWZLWKORFDOUXOHUV7KH Bombay besieged. FRPSDQLHV IRXQG LW YHU\ GLIÀFXOW WR VHSDUDWH WUDGH Having discovered that they were still not strong IURP ORFDO SROLWLFV /HW XV VHH KRZ WKLV ZDV ÀQDOO\ HQRXJK WR ÀJKW WKH 0XJKDO SRZHU WKH\ H[SUHVVHG resolved. their willingness to trade under the protection of the Indian rulers. The Mughal authorities readily English Trading Settlements in India pardoned the English folly as they recognised that 7KHÀUVW(QJOLVKIDFWRU\LQ%HQJDOZDVHVWDEOLVKHG IRUHLJQ WUDGH FDUULHG RQ E\ WKH &RPSDQ\ EHQHÀWHG at Hugli in 1651 with the permission from Sultan Indian artisans and merchants and thereby enriched Shuja, then the Subedar of Bengal. Soon after, English the state treasury. Aurangzeb permitted them factories sprang up at Kasimbazaar, Patna and other to resume trade on payment of Rs. 150,000 as places in the province. These English settlements compensation. were called factories not because anything was In 1717, the Company secured from Emperor manufactured there but because the officials of Farrukhsiyar a farman confirming the privileges the Company were called factors . These factories granted in 1691 and extending them to Gujarat and FRQVLVWHG RI RIÀFHV DQG ZDUHKRXVHV DQG LQGXOJHG the Deccan. This farman granted the company the in trade. These and other locations in India became freedom to export and import their goods in Bengal centres of international trade in spices, cotton, sugar, without paying duty or taxes. This also gave the raw silk, calico and indigo. right to issue passes or dastaks for movement of such In 1662, the Company got the island of Bombay JRRGV %XW GXULQJ WKH ÀUVW KDOI RI WKH WK FHQWXU\ from King Charles II. Soon they established factories Bengal was ruled by strong nawabs such as Murshid 14 Quli Khan and Alivardi Khan. They exercised strict Madras came a strong rival and military force control over the English traders and prevented under Admiral Watson and Colonel Clive. Clive them from misusing their privileges. Neither did reconquered Calcutta in 1757, and compelled the they allow them to strengthen fortifications at nawab to concede all the demands of the English. Calcutta or to rule the city independently. Then the 7KH (QJOLVK KRZHYHU ZHUH QRW VDWLVÀHG 7KH\ KDG East India Company remained a mere zamindar of decided to place Mir Jafar on the throne of Bengal. So the nawab. they presented the young nawab with an impossible set of demands. Both sides realised that war was BRITISH CONQUEST OF BENGAL LQHYLWDEOH 7KH WZR PHW IRU EDWWOH RQ WKH ÀHOG RI Bengal was the richest and the most fertile of Plassey on 23 June, 1757. In the battle that followed India’s provinces. Its industries and commerce only a small force of the nawab participated. Mir were well developed. The East India Company had -DIDU WRRN QR SDUW LQ WKH ÀJKWLQJ 7KH QDZDE ÁHG KLJKO\ SURÀWDEOH WUDGLQJ LQWHUHVWV LQ WKH SURYLQFH but was chased and put to death. Mir Jafar was The farman granted the Company the freedom to proclaimed the new nawab. He gave the British export and import their goods in Bengal without undisputed right to trade without taxes. He paid paying taxes. The Company’s servants were also a huge sum as war compensations. The East India permitted to trade but were not covered by this Company’s servants collected gift worth 30 million farman. They were required to pay the same taxes rupees from the nawab and the Bengal treasury. It as Indian merchants. This farman was a regular also received the zamindari of the 24 Parganas near VRXUFH RI FRQÁLFW EHWZHHQ WKH &RPSDQ\ DQG WKH Calcutta. nawabs of Bengal. Matters came to a head when the young and rash Siraj-ud-daulah became the nawab Did you know? in 1756. He demanded that the English trade on the Did you know how Plassey got its name? Plassey same basis as in the time of Murshid Quli Khan. The is the anglicised pronunciation of Palashi and the English refused to comply as they felt strong after place derived its name from the palash tree known their victory over the French in South India. Instead IRU LWV EHDXWLIXO UHG ÁRZHUV WKDW \LHOG JXODO WKH of agreeing to pay taxes on their goods, they levied powder used in the festival of Holi. There was a heavy duties on Indian goods entering Calcutta big forest of Palash tree close to the area where this which was under their control. All this angered the battle was fought in 1757. young nawab who suspected that the Company was hostile to him and was favouring his rivals for the The Battle of Plassey paved the way for the throne of Bengal. The breaking-point came when, English conquest of Bengal and eventually the whole without taking the nawab’s permission, the Company of India.