🌍 Chapter 2 – From Trade to Territory: The Company Establishes Power

(History, Class 8 – NCERT Our Pasts–III)

🏰 1. Introduction

• By the 17th century, European trading companies such as the Portuguese, Dutch, French, and English came to India.
• Their main aim: trade in spices, silk, cotton, indigo, saltpetre (used for gunpowder), and later opium.
• Gradually, trade was replaced by territorial control → leading to the rise of British rule in India.
• The East India Company came to India as traders but became rulers over time.

🚢 2. The Arrival of European Trading Companies

🇵🇹 Portuguese

• First Europeans to arrive in India (Vasco da Gama, 1498 at Calicut).
• Set up trading posts at Goa, Daman, Diu.

🇳🇱 Dutch

• Controlled Indonesia, limited presence in India.

🇫🇷 French

• Came later; established settlements at Pondicherry, Chandernagore, Mahe, Karaikal.

🇬🇧 English (East India Company)

• Received permission from Mughal emperor Jahangir in 1600s.
• First factory at Surat (1613).
• Later spread to Madras (Chennai), Bombay (Mumbai), Calcutta (Kolkata).

📌 Key Point: Initially, these companies were business rivals. They fought with each other to dominate Indian trade. Finally, the British defeated others and became most powerful.

⚔️ 3. Struggle for Power – Battle of Plassey (1757)

• After Aurangzeb’s death (1707), the Mughal Empire weakened.
• Bengal, Hyderabad, Awadh became independent kingdoms.
• British saw this as a chance to expand power.

🌟 Battle of Plassey – Turning Point

• Nawab of Bengal Siraj-ud-Daulah vs. British East India Company.
• Reason: Company misused trade privileges, fortified Calcutta without permission.
• Robert Clive led the Company’s forces.
• Siraj was betrayed by Mir Jafar (his commander).
• Result: British victory (1757) → Bengal came under British control.

📌 Impact: The Company gained huge revenue from Bengal → financed further conquests.

⚔️ 4. Battle of Buxar (1764)

• Nawab of Bengal (Mir Qasim) + Nawab of Awadh + Mughal emperor Shah Alam II vs. East India Company.
• Company’s army under Hector Munro defeated them.
• 📜 Treaty of Allahabad (1765):
  • Company got Diwani rights (right to collect revenue) of Bengal, Bihar, Orissa.
  • This made the British true rulers of Bengal.

💡 From traders → to rulers.

🏹 5. Expansion of Company Rule

🔹 Methods of Expansion

1. Wars and Conquests (Plassey, Buxar, Mysore wars, Maratha wars).
2. Subsidiary Alliance (introduced by Lord Wellesley):
   • Indian rulers had to accept a British army in their territory.
   • Pay for the army, and not keep their own military.
   • If unable to pay → part of territory taken.
   • Example: Awadh, Hyderabad.
3. Doctrine of Lapse (introduced by Lord Dalhousie):
   • If a ruler died without a male heir, the kingdom was annexed by the Company.
   • Example: Satara, Jhansi, Nagpur.

🐅 6. Mysore and Tipu Sultan

• Mysore rose as a strong state under Hyder Ali and Tipu Sultan.
• Fought four wars with the British (1767–1799).

⚔️ Anglo-Mysore Wars:

• Tipu Sultan was known as the Tiger of Mysore.
• Modernised army, used French help.
• Famous for developing the Mysorean rocket.
• 1799: Tipu died in the Fourth Anglo-Mysore War at Srirangapatna.
• Mysore was annexed by the British.

🐎 7. The Marathas

• Strong power in western India.
• British fought three wars with them:

⚔️ Anglo-Maratha Wars (1775–1818):

1. First War → British defeated.
2. Second War → Marathas weakened.
3. Third War (1817–1818) → Marathas completely defeated.

📌 By 1818, British control spread over most of India.

🕌 8. Hyderabad and Awadh

• Hyderabad forced to accept Subsidiary Alliance.
• Awadh annexed later by Dalhousie under excuse of misgovernance (1856).

👑 9. Decline of the Mughal Empire

• Last Mughal emperor: Bahadur Shah Zafar.
• After 1857 Revolt, British exiled him to Rangoon (Burma).
• Mughal dynasty officially ended.

🏛️ 10. Administration under the Company

• After gaining territories, Company set up new administration system:
  • Collected land revenue (introduced Permanent Settlement, Ryotwari, Mahalwari).
  • Maintained army (sepoys + British officers).
  • Appointed Residents in Indian courts to control rulers.
  • Introduced laws and regulations (British legal system).

📌 Gradually, India became a colonial state.

🌍 11. Impact of British Expansion

• Indian rulers lost power and freedom.
• Heavy revenue demands ruined peasants.
• Indian industries (like textiles) declined.
• New administration and legal systems introduced.
• British became paramount power in India.

📝 12. Key Dates to Remember

• 1498: Vasco da Gama arrived in India.
• 1613: First English factory at Surat.
• 1757: Battle of Plassey.
• 1764: Battle of Buxar.
• 1765: Treaty of Allahabad.
• 1799: Tipu Sultan killed in Fourth Mysore War.
• 1818: Defeat of Marathas.
• 1856: Annexation of Awadh.
• 1857: Revolt of 1857.

🎯 13. Key Points for Revision

• East India Company → from traders to rulers.
• Battle of Plassey & Buxar → turning points.
• Subsidiary Alliance & Doctrine of Lapse → tools for expansion.
• Tipu Sultan & Marathas → resisted British, but defeated.
• By mid-19th century, most of India under British control.

✨ Notes Summary (Quick Look):

• 🛳️ Traders → 👑 Rulers
• ⚔️ Plassey (1757) → British victory
• ⚔️ Buxar (1764) → Diwani rights
• 📜 Subsidiary Alliance → Indian rulers lost army
• 📜 Doctrine of Lapse → annexation without heirs
• 🐅 Tipu Sultan → fought bravely, died in 1799
• 🐎 Marathas → defeated in 1818
• 👑 Mughals → ended after 1857
• 🏛️ New British administration → taxation, laws, army
• 🌍 Result → India became a colony