British East India Company (EIC)¶

1. Foundation and Objective (1600)¶

The East India Company (EIC) was established in 1600 through a Royal Charter granted by Queen Elizabeth I.
It was a joint-stock company formed with the objective of carrying out profitable trade with the East.

Initially, the Company functioned purely as a commercial enterprise, with no political ambitions.

2. Entry into India and Early Challenges (1608–1613)¶

The Company’s first foothold in India began at Surat in 1608.
To secure trading rights, William Hawkins visited the court of Mughal Emperor Jahangir.

However, due to the strong influence of the Portuguese, the British were initially unsuccessful.

A turning point came in 1612, when the British defeated the Portuguese in the Battle of Swally.
Impressed by this, Jahangir granted permission in 1613 to establish a factory at Surat.

3. Consolidation through Diplomacy (1615)¶

In 1615, Sir Thomas Roe was sent as an ambassador to Jahangir’s court.
He successfully secured a Royal Farman, granting the Company important trading privileges.

This marked the beginning of stable and protected British trade in India.

4. Territorial Expansion and Strategic Bases¶

4.1 South India (Madras)¶

In 1639, Francis Day acquired land from the Raja of Chandragiri.
Here, the British established Fort St. George (Madras), which became their first major fortified settlement.

4.2 Western India (Bombay)¶

1661: Bombay was received by Charles II as dowry from Portugal
1668: Transferred to the EIC for a nominal annual rent

Bombay later developed into a key administrative and trading center.

4.3 Eastern India (Bengal)¶

Bengal emerged as the most significant region due to its wealth.

1651: Factory established at Hugli
1690: Job Charnock founded Calcutta (Sutanuti)
1696: Construction of Fort William
1698: Zamindari rights acquired over Sutanuti, Kalikata, and Govindpur

This marked the beginning of British dominance in eastern India.

5. The Farman of Farrukhsiyar (1717)¶

The Farman issued by Mughal Emperor Farrukhsiyar in 1717 significantly strengthened the Company.

Key Provisions:¶

Duty-free trade in Bengal
Permission to use Dastaks (free passes)
Trade rights extended to Gujarat and Hyderabad

Significance:¶

Strengthened the Company’s economic position
Led to misuse of privileges
Adversely affected Indian traders

This event laid the foundation for the Company’s transition from trade to political power.

6. Trade Structure and Commodities¶

6.1 Cotton Textiles (Primary Commodity)¶

India was a global leader in textile production.

Types included: - Calico
- Dimity
- Muslin (notably from Dhaka)

6.2 Silk Production¶

Major centers: - Kasimbazar
- Murshidabad
- Banaras
- Ahmedabad
- Lahore
- Multan

6.3 Indigo¶

Indigo was cultivated for its dye, which was in high demand in Europe.

However: - Farmers were forced into cultivation
- Prices were exploitative
- Soil fertility declined

This resulted in the Indigo Revolt (1859–60).

6.4 Saltpetre¶

Produced mainly in Bihar
Essential for gunpowder manufacturing
Exported in large quantities

6.5 Opium¶

Cultivated in Bihar
Exported to China
Became a major source of Company revenue

7. Mechanism of Control: The Dadni System¶

Under the Dadni system, the Company provided advance payments to weavers and artisans.

Consequences: - Producers were forced to sell at low prices
- Traditional industries weakened
- Economic exploitation increased

8. Conclusion¶

The British East India Company entered India as a trading organization, gradually expanded its commercial base through strategic settlements and diplomatic privileges, and eventually used these advantages to establish economic dominance, which later translated into political control.

9. Timeline for Quick Revision¶

1600 → Formation of EIC
1608 → Arrival at Surat
1612 → Battle of Swally
1613 → Surat Factory
1615 → Thomas Roe Mission
1639 → Madras (Fort St. George)
1668 → Bombay transferred to EIC
1690 → Calcutta established
1717 → Farrukhsiyar Farman