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 British Symbol

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 The East India Company (also the East India Trading Company, English East India
Company, and then the British East India Company) was an early English joint-
stock company that was formed initially for pursuing trade with the East Indies,
but that ended up trading mainly with the Indian subcontinent and China. The
oldest among several similarly formed European East India Companies, the
Company was granted an English Royal Charter, under the name Governor and
Company of Merchants of London Trading into the East Indies, by Elizabeth I on
31 December 1600. the Company was colloquially referred to as John
Company, and in India as Company ”Bahadur”
The East India Company traded
mainly in cotton, silk, indigo dye, salt , tea, and opium. However, it also came to
rule large swathes of India, exercising military power and assuming
administrative functions, to the exclusion, gradually, of its commercial
pursuits. Company rule in India, which effectively began in 1757 after the “Battle
of Plassey”, lasted until 1858, when, following the events of the Indian Rebellion
of 1857, and under the Government of India Act 1858, the British
Crown assumed direct administration of India in the new British Raj. The
Company itself was finally dissolved on 1 January 1874, as a result of the East
India Stock Dividend Redemption Act.
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 Early Impact
• The East India Co. enjoyed monopoly of trade with India
and Far east until 1813.
• The monopoly right was taken back by the queen and
trade with India was made open to others from England.
• The company got special privileges from the Mughal
Empire & from other Nawabs and rulers
• Trading monopoly was given to the East India Co. but its
officials carried trade from their own account to enter
into politics in England.
• So the company was cheated by its officials repeatedly so
the company was forced to ask the British Govt. for
financial support.

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 Government’s Interfernce
• The Govt. took advantage of the financial problems and
started putting restrictions on the company’s powers and
privileges.
• In 1717, the company obtained right of exemption on all
duties and to pay just Rs.3000 to the Mughal Emperor.
• By 1750, England’s trade with India was more than 30 lakh
Rs./anum
• These concessions were misused by the Britisher’s and they
started to wrongly explain meanings of those rights and
concessions.
• They tried to prevent Emperors and Rulers from using their
own rights
• The kings did not like this and started opposing the company.

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 “Battle of Plassey”
• Siraj-Ud-Daula, the Nawab of Bengal claimed that the company was
doing fraud with the provencial Govt. annually nearly 11.5 crore Rs.
• Due to this conflict, there was “Battle of Plassey”.
• Siraj-Ud-Daula was defeated in this battle by the company and got a
strong hold in Bengal.
• In 1765, the company got “dewani” rights and got a right to collect
revenue from Bengal for the company's political and economic
needs.
• After the Battle the company did not follow all the rules and
regulations relating to internal trade and started cheating emperors
by claiming privileges which they were not entitled.

• This Battle was just the beginning of the company rule in India.

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 “Battle of Buxar”
• Some Indian traders started to work for the company and
did unlawful duty free trade, as a result there was a loss of
Rs.25 lakh/anum to the Bengal treasury.
• When Nawab Mir Kasim tried to restrict the trading
activities the company decalred war on him and he was
defeated in the “Battle Of Buxar”. The company made Mir
Jafar the Nawab of Bengal as he agreed to demands of the
company.
• Due to “Dewani” rights the company could got the revenue
to meet expenses on military establishment as well as for
increasing its investment in trading activities. The
company’s investment was about Rs.60 lakh by 1767.

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 Industrial Revolution
• The cotton pieces manufactured by the company
were opposed by the year 1780 in England during
the “Industrial Revolution”.
• This happened because Manchester mills started
preparing the finest quality cotton textiles at
1/20th cost of Indian cotton textiles.
• The company wanted to make quick profits so
they started giving more attention to products
like raw cotton , indigo, jute, opium and sugar. So
that they can export it to England as raw
materials.
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 Creation of Agency Houses
• During early stage the company officials depended on
the “Banias” for market information and raising
money.
• At the end of the 18th century the company opened
Agency Houses in Calcutta. They gave their expert
knowledge and monetary assistance.
• These agency houses provided service also to the
English merchants conducting foreign and internal
trade.
• These houses got funds from the officials from the
company, Money lenders, Indigenous bankers of the
company.

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• In 1820, some Agency Houses went into losses because of the
indigo crisis i.e.(the prices of indigo fell very badly.)
• During the middle of the 18th century around 50-60 ships
come yearly to Bengal and carried items of export by trade, by
the end of the century, the number of ships went up to 300.
• In 1813, the monopolistic trading rights of the East India Co.
were abolished by the British govt. and other traders of
England were also allowed to trade with India.
• During the 19th century, India’s cotton and sugar exports
started falling and export of foodstuffs and industrial raw
materials started rising. The English factories had to face this
vast demand.

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 • In the 19th century, India imported textiles from
Lancashire, metals and mineral oils. Due to
increasing imports of manufactured and finished
items from England around 1875,many
traditional manufacturers had to close down
their business in India.
• Due to this money from India went to England
and investment was not made in Indian
industries.
• These funds were used in the “Industrial
Revolution” of the 18th and 19th century in
England and other political purposes also.
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 Thus, British East India Company rather than trading
fairly with India exploited Indian people, this resulted
in a revolution and finally on the 15th of Augest,1947
India got freedom from the British Empire which ruled
for 200 years.

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