The Arrival of the British in India

Among the European powers that initiated new trade activities in India and the Indian Ocean region, the British proved to be the most successful and influential. Notably, the British arrived relatively late in the competition for trade in the East, yet they surpassed other European powers. The main reason for this was their success in understanding the nature of Asian trade, including India, and leveraging political power. England's consumer culture, industrial development, balance of demand and supply, and favorable political conditions greatly encouraged capital investment.

By the late 16th century, Asian goods began reaching Europe. In 1599, an adventurous trader named Mildenhall came to India.

When was the East India Company established / When did the British come to India?

Queen Elizabeth I's Charter:

The East India Company was established in 1600. The first significant step in England's trade in the East was taken on December 31, 1600, when Queen Elizabeth I issued a charter granting the Governor and Company of Merchants of London exclusive rights to trade in the East. Initially, these privileges were granted for 15 years, which were extended indefinitely in May 1609 through a new charter. In the early years, a fleet of independent merchants was generally sent, and the profits from such voyages were shared among them.

Financially, the East India Company was smaller compared to the Dutch company. In its first trade voyage, it earned significantly less than the Dutch company. Despite this, the English company was notably well-organized, with a group of 24 directors elected annually at the shareholders' general meeting. Initially, the East India Company focused on the spice trade, particularly obtaining pepper and spices from Indonesia. For 12 years, they earned a 20% profit annually. Soon, they realized the importance of English goods, especially cloth, and began using them to purchase spices.

Thomas and Jahangir

A plan was made to open a factory in Surat, Gujarat, and Captain William Hawkins was sent to the Mughal Emperor Jahangir's court, reaching there in 1609. However, due to Portuguese conspiracies, he returned empty-handed. When Captain Middleton defeated the Portuguese fleet near Swally Hole in Surat in 1611, Mughal Emperor Jahangir was impressed and granted permission to establish a permanent factory in Surat in 1613.

Before this, in 1611, the English had already established a factory in Masulipatnam. Later, they were allowed to open factories at various locations on the west coast.

Hawkins and Thomas Roe

As William Hawkins reached Jahangir's court in 1609 but failed to obtain permission to open a factory in Surat, Sir Thomas Roe was sent to the Mughal court in 1615, staying until 1619. Although he failed to secure a commercial treaty with Mughal ruler Jahangir, he ensured various privileges for establishing factories at different locations in Mughal India. Roe used his diplomatic skills to gain royal assistance. Meanwhile, they continued to loot and destroy Portuguese ships and extorted heavy compensation from Indian ships. They resorted to warnings, treaties, conspiracies, and attacks as part of their policy.

British Invasion on India

William Hawkins

British Trade Expansion:

By eliminating Portuguese influence and power, the British established factories in various parts of India. By 1623, factories were opened in Broach and Ahmedabad, in addition to Surat and Masulipatnam, and they were fortified for the company's security. In 1625, the British fortified Surat, indicating their territorial expansion and imperial ambitions. To avoid conflicts with the Dutch and Mughal power, the British focused on small states in South India. In 1622, they captured Omungpur, a significant victory that secured them from Portuguese attacks.

In 1639, the British leased Madras from a local king. Madras was a port, and the British promised to pay half the customs duty to the king. In return, they gained the right to fortify and issue their own currency. In 1640, the British seized Madras from the representative of the Vijayanagar rulers, the king of Chandragiri. Fort St. George was built here, within which factories were opened.

During 1652-54, due to hostility with the Dutch, the British came closer to the Portuguese on India's west coast. In 1661, King Charles II of Britain married a Portuguese princess, receiving Bombay Island as dowry. Charles leased it to the East India Company for a nominal rent of 10 pounds annually. In 1687, the company's headquarters moved from Surat to Bombay, gradually prospering under the administration of Sir George Oxenden (1662-1669), Gerald Aungier (1669-77), and Sir John Child (1682-90).

Increasing Influence of the Company in Eastern India

After 1630, the influence of the East India Company in Eastern India grew rapidly. Factories were established in Balasore, Odisha, in 1633, and in Hooghly, Bengal, in 1651. Factories were also opened in Patna, Bihar, and Dhaka and Kasimbazar in Bengal. By 1658, Bengal, Bihar, Odisha, and the Coromandel Coast came under the control of Fort St. George. In Eastern India, the company had to bring goods like cloth, silk, sugar, and saltpeter from the interior for trade. They had to pay tolls and customs duties at various places. The company consistently tried to remove these obstacles. With the firmans obtained in 1651, 1656, and 1672, they were freed from these obstacles. Now, they only had to pay a fixed amount to Indian rulers. In 1680, the Mughal emperor imposed a jizya tax on the company, allowing them duty-free trade everywhere except Surat.

Beginning of Trade in Calcutta

In 1690, the Nawab of Bengal, Ibrahim Khan, invited the East India Company. In 1691, Emperor Aurangzeb issued a firman allowing the English company duty-free trade in Bengal in exchange for a fixed annual amount. Soon, the British established a factory in Sutanuti and fortified it. In 1696, a zamindar named Shobha Singh rebelled. In 1698, the company purchased the zamindari, i.e., the right to collect revenue, for 1200 rupees. This gave them zamindari rights over the villages of Sutanuti, Govindpur, and Kalikata. Thus, within 90 years, the East India Company gained control over three major ports—Bombay, Madras, and Calcutta. By the mid-17th century, the Dutch East India Company was eliminated.

In 1700, the factories in Bengal came under the authority of the President and Council, headquartered in the fortified settlement of Fort William. The name Kalikata was anglicized to Calcutta.

Farrukhsiyar's Firman and Expansion of Company Trade

After Aurangzeb's death, the Mughal Empire weakened, and the British took advantage, obtaining many concessions and privileges. In 1717, an English delegation led by John Surman succeeded in obtaining a firman from Mughal Emperor Farrukhsiyar, extending the privileges of the 1691 firman to Gujarat and the Deccan. In 1717, Mughal Emperor Farrukhsiyar issued a royal firman granting various privileges to the company, including:

(i) Granting the East India Company the right to collect revenue in more areas around Calcutta;

(ii) Exemption from all taxes in Surat in exchange for an annual payment of 10,000 rupees;

(iii) Permission for duty-free trade in Bengal in exchange for an annual payment of 30,000 rupees;

(iv) Recognition of the company's coins minted in Bombay as legal tender throughout the Mughal Empire;

(v) Retention of the company's old privileges in Hyderabad and tax exemption in that region, among other privileges.

Struggle with the Portuguese and the Dutch

In establishing themselves, the English company had to contend with the Mughals and Indian states on one hand, and the Portuguese and the Dutch on the other. In the first three decades of the 17th century, they faced the Portuguese. After the Treaty of Madrid in 1630, hostility between the English and the Portuguese ended. In 1634, a second treaty was signed between the president of the English factory in Surat and the Portuguese viceroy in Goa, agreeing to assist each other in commercial matters in India. In 1654, the Portuguese recognized the English right to trade in the East, and under the 1661 treaty, both united against the Dutch in India.

Regarding Dutch commercial power, it is clear that the Dutch not only expelled the Portuguese from the spice trade but also drove the English out of Southeast Asia. Although the Dutch were primarily interested in the spice-producing islands, they also opened factories in Pulicat (1610), Surat (1616), Chinsura (1653), Kasimbazar, Baranagar, Patna, Balasore, Nagapattinam (1659), and Cochin (1663).

The Dutch were in a more secure position than the English. They had established control over Southeast Asia, so there was no pressure on them to acquire territory in India. After 1653-54, hostility between the Dutch and the English escalated to confrontations. At this time, the Dutch fleet reached near Swally. In 1667, the Dutch agreed to leave the English settlements in India, and the English relinquished their pressure on Indonesia. Thus, both powers reached a mutual understanding. Despite this, the English continued to try to expel the Dutch from Indian soil, and the Dutch limited themselves to domestic trade. In the 18th century