Were you aware that the British initially arrived as a modest trading entity and showed reluctance in territorial expansion? So, how did they evolve into rulers of a sprawling empire?

This chapter delves into the transformation, detailing the ascent of the East India Company, the expansion of trade, the establishment of new business regulations, and significant events like The Battle of Plassey. These notes for CBSE Class 8 History, Chapter 2 – From Trade to Territory, provide students with the confidence to tackle their History exams effectively.

CBSE Class 8 History Notes Chapter 2 – From Trade to Territory

Overview

Following the decline of Aurangzeb, various Mughal governors and influential landowners began establishing regional powers after his demise in 1707.

By the latter half of the eighteenth century, a new political force emerged in the form of the British.

East India Company Comes East

In 1600, the East India Company secured a charter from England’s ruler, Queen Elizabeth I, granting it exclusive trading rights in the East. Per the charter, the Company was authorized to navigate across oceans in search of new territories to procure goods at lower prices, subsequently selling them at higher prices in Europe.

The Portuguese had already established a stronghold on India’s western coast, centered in Goa. By the early 17th century, the Dutch began exploring trade prospects in the Indian Ocean, soon followed by the French.

All these trading entities were attracted to the same commodities, such as high-quality cotton, silk, pepper, cloves, cardamom, and cinnamon, which were in high demand.

The competition to secure markets often resulted in intense conflicts among the trading companies. Trade operations were frequently accompanied by armed confrontations, prompting the fortification of trading posts for protection.

East India Company begins to trade in Bengal

In 1651, the inaugural English factory was established, serving as the operational center for the Company’s traders, referred to as “factors.” This factory warehouse stored goods intended for export.

By 1696, the Company erected a fort around the settlement. Continuously striving for additional concessions and leveraging existing privileges remained a persistent strategy for the Company.Trade Conflicts:

How trade led to battles

Tensions between the East India Company and the Nawabs of Bengal escalated significantly. The Bengal nawabs staunchly withheld concessions, imposed hefty tributes for the Company’s trade privileges, prohibited coin minting rights, and curtailed fortification expansions.

Additionally, they accused the Company of depriving the Bengal government of substantial revenue and challenging the Nawab’s authority. These conflicts ultimately precipitated confrontations, culminating notably in the pivotal Battle of Plassey.

The Battle of Plassey

In 1756, Alivardi Khan passed away, and Sirajuddaulah ascended to the position of Nawab of Bengal. The East India Company attempted to support one of Sirajuddaulah’s rivals in claiming the Nawabship. Upon learning of the Company’s intervention in political matters, Sirajuddaulah demanded they cease meddling, halt fortification efforts, and pay owed revenues.

In 1757, under the leadership of Robert Clive, the Company’s forces confronted Sirajuddaulah at Plassey. The decisive factor in Sirajuddaulah’s defeat was the non-participation of the forces led by Mir Jafar. The Battle of Plassey gained prominence as it marked the Company’s initial significant triumph in India.

The primary goal of the Company was trade expansion. Initially, the Company aimed to achieve this through cooperation with local rulers, thus avoiding direct territorial acquisition. However, this approach proved challenging.

In 1765, the Mughal emperor appointed the Company as the Diwan of Bengal provinces, granting access to the region’s substantial revenue resources. Since the early 18th century, the Company’s trade with India had flourished, with goods from India exchanged for gold and silver imported from Britain.

Company officials become “nabobs”

Following the Battle of Plassey, Company officials compelled the actual Nawabs of Bengal to provide land and substantial sums of money as personal gratuities. When Robert Clive departed India, his amassed Indian fortune amounted to £401,102. In 1764, he assumed the role of Governor of Bengal and was tasked with combating corruption within the Company administration.

Numerous Company officials in India succumbed prematurely to disease and warfare. Some of these officials hailed from modest backgrounds, aspiring to accumulate sufficient wealth in India to return to Britain and lead comfortable lives. Those who successfully returned with wealth earned the moniker “nabobs,” derived from the Indian term nawab, albeit anglicized.

Company Rule Expands

Upon scrutinizing the process of Indian state annexation by the East India Company spanning from 1757 to 1857, several significant observations come to light.

The Company seldom initiated direct military assaults on unfamiliar territories. Instead, it employed an array of political, economic, and diplomatic strategies to expand its influence before assimilating an Indian kingdom.

Following the Battle of Buxar, the Company deployed Residents in Indian states. These individuals served as political or commercial agents, tasked with advancing the Company’s interests.

The subsidiary alliance entailed that Indian rulers were prohibited from maintaining independent armed forces. They relied on the Company for protection but were obligated to finance the “subsidiary forces” maintained by the Company for this purpose. Failure by Indian rulers to fulfill payment obligations resulted in the forfeiture of portions of their territory as penalties.

Tipu Sultan – The “Tiger of Mysore”

Under the leadership of formidable rulers such as Haidar Ali (reigning from 1761 to 1782) and his renowned son Tipu Sultan (reigning from 1782 to 1799), Mysore witnessed significant growth in power. It dominated the lucrative trade along the Malabar coast, from which the Company acquired pepper and cardamom.

In 1785, Tipu Sultan imposed a halt on the export of sandalwood, pepper, and cardamom. The Company engaged in four wars with Mysore (1767-69, 1780-84, 1790-92, and 1799). Ultimately, in the final conflict – the Battle of Seringapatam – the Company emerged victorious.

War with the Marathas

From the late 18th century onwards, the Company formulated plans to dismantle Maratha dominance. The Marathas suffered a significant defeat in the Third Battle of Panipat in 1761, which shattered their aspirations of ruling from Delhi.

Subsequently, they fragmented into numerous states led by various chiefs (Sardars) representing dynasties like Sindhia, Holkar, Gaikwad, and Bhonsle. These chiefs were united under a Peshwa (Principal Minister), who served as the effective military and administrative leader, headquartered in Pune.

The Marathas engaged in a series of conflicts. The first war concluded in 1782 with the Treaty of Salbai, without a decisive victor. The Second Anglo-Maratha War (1803-05) unfolded across multiple fronts, resulting in the British acquisition of Orissa and territories north of the Yamuna river, including Agra and Delhi. Ultimately, the Third Anglo-Maratha War of 1817-19 decisively quelled Maratha power.

The claim to paramountcy

Paramountcy, a novel policy introduced during Lord Hastings’ tenure (Governor General from 1813 to 1823), saw the Company asserting supremacy over Indian states. By the late 1830s, the East India Company grew apprehensive of Russian expansionism, particularly concerning potential encroachment into India from the North-West. Consequently, the Company engaged in an extended conflict with Afghanistan between 1838 and 1842, establishing indirect Company rule there. The annexation of Punjab followed in 1849 after two protracted wars.

Doctrine of Lapse

Under the administration of Lord Dalhousie, who served as Governor-General from 1848 to 1856, a final surge of annexations occurred. The Doctrine of Lapse, devised by Dalhousie, stipulated that if an Indian ruler passed away without a male heir, his kingdom would “lapse,” thereby becoming part of Company territory. In 1856, the Company assumed control of Awadh. Outraged by the humiliating manner in which the Nawab was deposed, the people of Awadh participated in the widespread revolt that erupted in 1857.

Setting up a New Administration

Warren Hastings, serving as Governor-General from 1773 to 1785, played a pivotal role in advancing Company authority. During his tenure, the Company expanded its influence in Bengal, Bombay, and Madras. British territories were categorized into administrative divisions known as Presidencies, consisting of Bengal, Madras, and Bombay, each governed by a Governor.

In 1772, a new judicial framework was introduced, mandating the establishment of two courts in every district – a criminal court (Faujdari adalat) and a civil court (diwani adalat).

Diverse interpretations of local laws by Brahman pandits, based on different schools of Dharmashastra, led to inconsistencies. To address this, in 1775, eleven pandits were tasked with compiling a digest of Hindu laws. Additionally, by 1778, a code of Muslim laws was formulated for the guidance of European judges.

The Regulating Act of 1773 facilitated the establishment of a new Supreme Court, alongside a court of appeal – the Sadar Nizamat Adalat – established in Calcutta. The Collector held a central role in Indian districts, responsible for revenue collection, tax administration, and maintenance of law and order, aided by judges, police officers, and darogas.

The Company Army

Under colonial rule in India, new administrative and reformist concepts emerged. The traditional Mughal army comprised both cavalry (sawars: trained soldiers on horseback) and infantry, consisting of paidal (foot) soldiers, with cavalry predominating.

However, in the eighteenth century, changes occurred as Mughal successor states like Awadh and Benaras began recruiting peasants into their armies and providing them with professional military training.

Following suit, the East India Company adopted a similar approach, leading to the formation of the sepoy army (derived from the Indian term Sipahi, meaning soldier).

In the early nineteenth century, the British initiated the development of a standardized military culture. Soldiers underwent European-style training, drill, and discipline, significantly regulating their lives compared to previous practices.

Conclusion

The East India Company underwent a transition from a trading enterprise to a territorial colonial authority. With the advent of new steam technology in the early nineteenth century, by 1857, the Company exercised direct governance over approximately 63 percent of the Indian subcontinent’s territory and 78 percent of its population.

Chapter 2 – From Trade to Territory- FAQs

How did the British transition from being a modest trading entity to rulers of a vast empire in India?

The British evolved from a modest trading entity to rulers of a vast empire in India through strategic alliances, military conquests, and economic exploitation. Initially arriving as traders, they gradually expanded their influence through treaties, annexations, and the establishment of administrative structures, ultimately asserting control over large swathes of Indian territory.

What were the main factors contributing to the escalation of conflict between the East India Company and the Nawabs of Bengal, leading to significant battles like the Battle of Plassey?

The conflict between the East India Company and the Nawabs of Bengal intensified due to disputes over trade privileges, revenue collection, and territorial expansion. This culminated in significant battles such as the Battle of Plassey, where the Company emerged victorious, solidifying its dominance in the region.

Can you elaborate on the impact of the Doctrine of Lapse, introduced under Lord Dalhousie, on the annexation of Indian territories by the East India Company?

The Doctrine of Lapse, introduced by Lord Dalhousie, allowed the East India Company to annex Indian territories if the ruler died without a male heir. This policy facilitated the Company’s territorial expansion and consolidation of power, contributing to the tensions that led to the Indian Rebellion of 1857.

What were the key strategies employed by the East India Company to expand its influence in India, particularly in dealing with Indian states and territories?

The East India Company employed various strategies to expand its influence in India, including the establishment of subsidiary alliances with Indian states, deployment of Residents to monitor and influence local affairs, and imposition of trade monopolies and tariffs to control economic resources.

How did the East India Company transform the Indian military landscape through the formation of the sepoy army and the introduction of European-style training and discipline?

The East India Company transformed the Indian military landscape by forming the sepoy army, recruiting local soldiers trained in European-style warfare. This army played a crucial role in maintaining Company rule and suppressing indigenous uprisings, enforcing British authority across the Indian subcontinent.