India’s trade with Europe dates back to ancient times, notably with the Greeks. During the Middle Ages, trade between Europe and India occurred along multiple routes. The Asian segment was managed primarily by Arab merchants, while the Mediterranean and European segments were dominated by the Italians. Despite passing through many hands and states, this trade was highly profitable.
However, the Ottoman conquest of Asia Minor and the capture of Constantinople in 1453 disrupted these routes. Consequently, Venetian and Genoese merchants, who monopolized the trade, denied the emerging Western European nations, notably Spain and Portugal, any share in the existing routes. This prompted Western European states to seek new, safer sea routes to India and the Spice Islands in Indonesia (then known as the East Indies). The fifteenth-century advancements in shipbuilding and navigation enabled these nations to bypass Arab and Venetian monopolies and open direct trade relations with the East, fueled by the Renaissance spirit of adventure.
The subsequent European penetration of Africa, driven by the lucrative slave trade in the sixteenth century, became a major source of capital accumulation. This trade, initially monopolized by Spain and Portugal and later dominated by Dutch, French, and British merchants, formed the basis of West European and North American prosperity. It also provided the capital that would later finance the Industrial Revolution in Europe.
Important Note: The immense profits from the slave trade and subsequent extraction of wealth from India laid the foundation for the commercial supremacy of England and France.
The sixteenth century marked the beginning of European penetration into Asia. Portugal monopolized the highly profitable Eastern trade for nearly a century, establishing trading settlements at Cochin, Goa, Diu, and Daman in India. The Portuguese combined trade with military force, leveraging their superior armed ships to dominate the seas.
Alfonso D’Albuquerque, the Portuguese viceroy, expanded Portuguese dominance over the Asian coast, waging wars to safeguard their trade monopoly. Despite their barbaric methods and inhuman cruelties, the Portuguese maintained control over Indian territories on the coast, using their naval supremacy to secure trading concessions from the Mughal Emperors.
The English East India Company gradually expanded its influence, initially establishing factories (trading posts) in Surat, Broach, Ahmedabad, Agra, and Masulipatam. The English combined trade with diplomacy and war, exploiting the political instability in the Vijayanagar Kingdom and other southern states.
The English East India Company began with humble origins, establishing factories in strategic locations across India. The Madras factory became a significant center of activity after the lease of the area was granted to the Company in 1639. The Fort St. George was built around this factory, symbolizing the Company’s growing influence in the region.
By 1687, the Company had set explicit plans to establish a strong English dominion in India. However, this ambition was initially met with resistance from the Mughal Empire under Aurangzeb. The Company misjudged its strength, leading to a temporary setback in its efforts to dominate Bengal. Despite this, the Company continued its expansion, securing trading rights and establishing Calcutta as a major center of its operations by 1698.
In the early eighteenth century, British settlements in Madras, Bombay, and Calcutta became thriving cities, attracting large numbers of Indian merchants and bankers. The Company’s commercial affairs flourished, with imports from India to England increasing significantly.
Learning Outcomes:
- Understanding of the rise of European powers in India.
- Knowledge of the English East India Company’s strategic expansion.
- Insight into the role of trade in consolidating British influence in India.
The Anglo-French struggle in South India from 1744 to 1763 marked a significant phase in the contest for dominance in India. The French East India Company, established in 1664, initially controlled several trading posts in India and the islands of Mauritius and Reunion. However, the French Company, heavily dependent on the French government, suffered due to the inefficiency and corruption within the state.
In 1742, war broke out between France and England, extending to India. Dupleix, the French Governor-General, exploited the internal conflicts among Indian rulers to expand French influence. His strategy involved using the French army to support one faction against another in local disputes, thereby securing commercial and territorial advantages.
The English eventually defeated the French, leading to the recall of Dupleix in 1754. Although the Treaty of Paris in 1763 restored French possessions in India, the French could no longer fortify their settlements or station significant troops, effectively ending their rivalry with the British in India.
The Battle of Plassey in 1757 marked the beginning of British political control over India, particularly Bengal. This victory over Siraj-ud-Daulah, the Nawab of Bengal, was preceded by a series of confrontations over the misuse of the 1717 royal farman that exempted the East India Company from paying taxes on its goods. The Company’s servants, however, exploited this privilege, leading to conflicts with the Nawab.
Siraj-ud-Daulah‘s efforts to curb British defiance culminated in his capture of Calcutta in 1756. The British, however, quickly regrouped, reconquering Calcutta and aligning with Mir Jafar, a discontented court member. The Battle of Plassey resulted in Siraj-ud-Daulah’s defeat, allowing the British to install Mir Jafar as a puppet Nawab.
By 1765, the Company had effectively gained control over Bengal’s administration, with the Diwani rights to collect revenue from Bengal, Bihar, and Orissa. This arrangement, known as the Dual System of Administration, allowed the British to wield power without direct responsibility, leading to widespread exploitation and eventual economic decline in Bengal.
Important Note: The Dual System of Administration under British control led to significant oppression and the draining of Bengal’s wealth, contributing to one of the most devastating famines in human history in 1770.
By 1772, the East India Company had become a formidable power in India, under the leadership of Warren Hastings and
later Lord Cornwallis. This period saw the British engage in several wars to consolidate their control over Bengal and expand their influence.
The British continued to expand their control under Lord Cornwallis, who implemented reforms in administration and revenue collection, laying the groundwork for further expansion in India.
Lord Wellesley pursued a policy of aggressive expansion during his tenure as Governor-General. He introduced the Subsidiary Alliance system, compelling Indian states to accept British military presence and control over their foreign relations.
The Subsidiary Alliance system effectively reduced Indian rulers to mere puppets of the British, stripping them of their independence and consolidating British power in India.
Important Note: The Subsidiary Alliance system was a strategic tool that allowed the British to expand their empire in India while minimizing direct military engagement and costs.
The British continued their expansion and consolidation of power in India through a series of annexations and wars. Sindh was annexed in 1843 after a brief campaign, and the Punjab was absorbed into the British Empire in 1849 following the Anglo-Sikh Wars.
Lord Dalhousie further extended British control through the Doctrine of Lapse, annexing several states, including Satara and Jhansi. The annexation of Awadh in 1856 marked the culmination of British expansion in India.
By 1857, the British had established dominance over the entire Indian subcontinent, either through direct rule or through control over princely states.
MCQ:
The Doctrine of Lapse was primarily used to:
a) Promote trade relations
b) Annex Indian states
c) Form military alliances
d) Protect Indian sovereignty
Answer: b) Annex Indian states
Strategy | Description | Impact |
---|---|---|
Subsidiary Alliance | Indian states had to accept British troops and control over foreign relations. | Weakened Indian states, expanded British influence. |
Doctrine of Lapse | Annexed states without a natural heir. | Increased British territories, undermined Indian rulers. |
Direct Military Campaigns | Wars and annexations against states like Mysore and Punjab. | Consolidated British power across India. |
Dual System of Administration | Indirect rule through control of revenues and administration in Bengal. | Led to economic decline and increased British wealth. |