From Trade to Territory

​From Trade to Territory

Mercantile Company

​What is a mercantile company?

A mercantile company makes a profit from wealth collected from other places.

Imperialism

​What is imperialism?

Imperialism is the process of formal or informal control of one country by another country for its own benefits, leading to social, economic, cultural and political changes.

Colonialism

​What is colonialism?

Colonialism is the process through which countries establish direct political and economic control over other territories in the world.

The EIC's

Due to the arrival of modernity in Europe, their trade expanded. They found new lands and new routes in Asia. This was linked to the Indian 'modern' period. Mercantile companies from Europe started coming to India for trade. These were the EICs or the East India Companies. They purchased items coveted by Europeans at a cheap price and sold them for a profit in Europe.

• They traded spices, silk, bullions (gold and silver)

• Bullions were also used as exchange currency

• British bought our goods with bullions

1600- Domestic Competition Reduced

​In 1600, Elizabeth I granted a royal charter to EEIC to trade with India

It gave them a monopoly in England to trade with the East. No other British trading company could trade.

Conflict

• Mercantile companies from different countries were interested in the same items.

• Demand started to increase.

• Prices were increased by the Indians.

• This reduced profit for EICs.

• The need to eliminate competition arose. The rivals of the British were the Dutch, Portuguese, Danish, French.

Elimination of Competition

​The EICs tried to eliminate competition from each other by:

Sinking, looting, attacking at night, blocking routes, preventing moving goods, fortification of settlements, fierce battles using heavy settlements, employing local people into their army and offices.

1608

​EEIC arrives in Surat

1651

​Factory set up at Hariharpur

1696

​Fortification began

• Mughal officials were bribed by the EEIC to give zamindari rights of 3 villages (like Kalikata(Kolkata)).

• The EEIC also persuaded Aurangzeb to issue a farman, allowing the EEIC to trade duty free.

​Special Privileges:

Factors- Private Traders of EEIC

​Factors were not under the Farman.

Granted rights-

1. Right to occupy territories.

2. Right to command fortresses.

3. Right to mint money.

4. Right to have civil and criminal jurisdiction over acquired territories.

5. Right to form a private army.

6. Right to form alliances.
   

1707

​Aurangzeb passed away. Regional kingdoms came up.

1757- Battle of Plassey

​Conflict:

The Nawab of Bengal, Siraj-ud daulah, was angered by-

• Duty-free trade

• Fortification

​Therefore, he reinforced duty for EEIC and asked them to stop fortification and stop meddling in political affairs.

1757- Battle of Plassey

​Process:

• Robert Clive led the Company's army against SIraj-ud daulah at Plassey.

• Some people were double agents (MirJafar).

• He was secretly helping EEIC, while pretending to be Siraj-ud daulah's commander.

• He got made a puppet ruler by the EEIC in return.

1757- Battle of Plassey

​Importance:

• The first major victory the Company won in India.

• EEIC got political power and became the 'kingmakers'.

Mir Jafar Replaced

​EEIC deposed Mir Jafar and replaced him by his son-in-law, Mir Qasim , because:

• He was unable to fully pay the British,

• He was protesting against the British methods

Battle of Buxar

• Mir Qasim refused to pay consession to British fully.

• War between him and EEIC.

• EEIC defeated Mir Qasim and reinstalled Mir Jafar.