CHAPTER 2 HISTORY

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.
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.