How The Trade Led To Battles ?

However, the royal charter didn’t prevent other European powers from entering the Eastern markets. The Portuguese had already established their presence on the western coast of India and had their base in The Dutch too were exploring the possibilities of trade in the Indian Ocean. Soon the French traders arrived on the scene. The problem was that all the companies were interested in buying the same things. So the only way the trading companies could flourish was by eliminating rival competitors. The urge to secure markets, therefore, led to fierce battles between the trading companies.

Trade was carried on with arms and trading posts were protected through fortification.

The first English factory was set up on the banks of the river Hugli in 1651.

By 1696 it began building a fort around the settlement near the factory where merchants and traders The company persuaded the Mughal emperor Aurangzeb to issue a farman granting the Company the right to trade duty-free. Aurangzeb’s farman had granted only the Company the right to trade duty-free. The officials of the Company, who were carrying on private trade on the side, were expected to pay duty. However, they did private trades without paying taxes, causing an enormous loss of revenue for Bengal.

This behavior led to a protest by the Nawab of Bengal, Murshid Quli Khan.

We have already seen that with the decline of Mughal rule, many successor states emerged. After the death of Aurangzeb, the Bengal nawabs asserted their power and autonomy, as other regional powers were doing at that time. Nawabs refused to grant the Company concessions, demanded large tributes for the Company’s right to trade, denied it any right to mint coins, and stopped it from extending its fortifications.

The Company on its part declared that the trade could flourish only if the duties were removed. It was also convinced that to expand trade it had to enlarge its settlements, buy up villages, and rebuild its forts. The conflicts led to confrontations and finally culminated in the famous Battle of Plassey.

Sirajuddaulah, then Nawab of Bengal, with his force, captured the English factory at Kassimbazar and then went to Calcutta to establish control over the Company’s fort.

Company officials in Madras sent forces under the command of Robert Clive, reinforced by naval fleets. Prolonged negotiations with the Nawab followed.

Finally, in 1757, Robert Clive led the Company’s army against Sirajuddaulah at Plassey.

Clive had managed to secure the support of one of Sirajuddaulah’s commanders named Mir Jafar by promising to make him Nawab after crushing Sirajuddaulah. The Battle of Plassey became famous because it was the first major victory for the English East India Company in India. The Company was still unwilling to take over the responsibility of the administration. Its prime objective was the expansion of trade.

But Mir Jafar protested with the British on administrative matters. He was replaced by Mir Mir Qasim. He too had conflicts with the East India company. The Company defeated him in the Battle of Buxar (1764).East India company now started to shift from their primary objective from trade to expansion of territories.

In 1765 the Mughal emperor appointed the Company as the Diwan of the provinces of Bengal. The Diwani allowed the Company to use the vast revenue resources of Bengal.

Now revenues from India could finance Company expenses. These revenues could be used to purchase cotton and silk textiles in India, maintain Company troops, and meet the cost of building the Company fort and offices at Calcutta.