In 1599, a group of prominent merchants and explorers came together and formed a joint venture company. They used to call themselves ‘Merchant Adventurers’.
The name of the company was ‘Governor and Company of Merchants of London trading into the East Indies’.
It was formed to trade commodities including cotton, silk, indigo dye, sugar, salt, spices, saltpetre, tea, etc. in the East Indies.
These merchants used to refer to the eastern part of the world as the ‘East Indies’. Hence Later on, this company came to be known as ‘East India Company’.
On 31st December 1600, Queen Elizabeth I granted the Royal Charter to the company (EIC).Under this Royal charter the company received legislative powers and monopoly for 15 years.
In that charter, the company got permission to trade with all countries in east of the Cape of Good Hope and west of the Strait of Magellan.
After receiving permission from the crown, the EIC went to Indonesia in 1601. That first expedition of the company was led by James Lanchaster.
And when these people reached that region, Portuguese, Spanish and Dutch traders were already present in these Spice Islands. The Dutch traders were dominant in that region.
But still the company successfully set up two factories in that region – One at Bantam on Java Islands and another in Maluku Islands (Spice Islands).
And when the company returned to England in 1603, it made multifolds profits from that successful voyage. It increased the confidence of the company because it opened new opportunities of trade for the company.
By that time Queen Elizabeth had died in 1603, and King James I had become the new ruler of England.
After that huge success again the company plans a new voyage but this time they decide to move to the other part of the region to avoid the competition and conflict with other european traders. And hence they decide to go to India.
In 1608, the ship of EIC was docked at Surat. That expedition was led by William Hawkins.
Captain Hawkins arrived in the court of Jahangir in April 1609 to get the permission of trade in the region but he failed due to intervention and opposition of the Portuguese.
Because the Portuguese were already present in India.They had established great relations with the Jahangir already as they had been trading in the Indian Subcontinents from 1500. Vasco da Gama was the first portuguese to come to India in 1498.
Captain Hawkins stayed in the Jahangir’s court from 1609 to 1611(two years) but couldn’t get the permission. Hence EIC moved to the southern eastern part of the Indian subcontinent.
There in 1611, the EIC started trading at Masulipatnam on the south-eastern coast of India.
In 1612, the EIC company fought a Battle with the Portuguese in the Swally (Suvali) region of Surat and won this battle. It is called the ‘Battle of Swally’.
Battle of Swally (1612)
After that victory in the region an impressed Jahangir granted permission to the British to set up the factory at Surat but with limited rights.
Thus the East India Company set up the first factory at Surat in 1613. After That EIC requested the Crown to send ambassadors to get more privileges of trade.
In 1615, Thomas Roe was sent by the British Crown as an accredited ambassador of James I to the court of Jahangir to arrange a commercial treaty for exclusive rights for trade in Surat.
He stayed in the Jahangir’s court from 1615 to 1619 but he was unsuccessful in concluding a commercial treaty with the Mughal emperor.
However, he was able to secure a number of privileges, including permission to set up factories at Agra, Ahmedabad and Broach.
Meanwhile, the factory was established by the EIC at Masulipatnam in 1616.
Following were the areas where trading posts had been set up:
- Surat (1619)
- Madras (1639)
- Bombay (1668)
- Calcutta (1690)
In 1670, the EIC had received rights to autonomous territorial acquisition, to make war and peace and exercise civil and criminal jurisdiction. They had got more legislative powers under the Royal Charter.
By the time of 1700, the EIC had started misusing the trading privileges, they were not paying the taxes, exploiting the lands and resources of India.
In 1757, the Nawab of Bengal Siraj-ud-Daulah captured the William Fort and put 146 employees of EIC into the dungeon. In this incident, one hundred and twenty-three employees died due to suffocation and heat. This event is also known as ‘The Black Hole Tragedy’.
Nawab of Bengal (Siraj-ud-Daulah)
The EIC got furious with this act by the Nawab of Bengal, therefore they decided to fight with the Nawab. On 23rd June, 1757 East India Company fought a Battle with Nawab of Bengal.
This battle between the EIC (led by Robert Clive) and Nawab of Bengal is called the ‘Battle of Plassey (1757).’ The East India Company won this battle with corruption.
Army of Nawab on Battle field
The EIC bribed and promised to Mir-Zafar the commander chief of Nawab’s army. If he will not support the Nawab of Bengal, he will be proclaimed as new ruler in the region. Thus, the Nawab of Bengal lost that battle.
Army of EIC on Battle Field
Afterward, Mir-Zafar was made the ruler in the region after this victory. Thereafter, in 1760, his son-in-law Mir-Qazim was made the ruler.
In 1764, Mir-Qazim fought a battle with East India Company. He was accompanied by Shah Alam-II, but he lost and that ended with ‘The Treaty of Allahabad.’ That battle is known as ‘Battle of Buxar (1764).’
Battle of Buxar (1764)
Under this treaty Alam granted East India Company the ‘Diwani Rights’ or the rights to collect taxes in Bengal, Bihar and Orissa.
Thus, the British started their rule in India and during that period of time, many administrative changes were introduced in India. And these administrative changes also laid the foundation for the present system of governance.
Especially, the period from the introduction of The Regulating act of 1773 to the government of India Act of 1947.