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Latest History NCERT Notes, Solutions and Extra Q & A (Class 8th to 12th)
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Class 8th Chapters
1. Introduction: How, When And Where 2. From Trade To Territory The Company Establishes Power 3. Ruling The Countryside
4. Tribals, Dikus And The Vision Of A Golden Age 5. When People Revolt 1857 And After 6. Civilising The “Native”, Educating The Nation
7. Women, Caste And Reform 8. The Making Of The National Movement: 1870s-–1947

Chapter 2 From Trade To Territory

Following the death of **Aurangzeb** in 1707, the last significant Mughal ruler, the Mughal Empire weakened. Many regional governors (**subadars**) and large landowners (**zamindars**) asserted their independence, leading to the formation of numerous regional kingdoms across India. This decline in central authority meant Delhi was no longer an effective seat of power.

By the mid-18th century, a new dominant force began to emerge in India: the **British**. Initially arriving as a small **trading company** (the East India Company) with no immediate intention of acquiring territory, they eventually became rulers of a vast empire. This chapter explores how this transformation from traders to rulers occurred.

Bahadur Shah Zafar and his sons being arrested by Captain Hodson.

Fig. 1 shows the arrest of Bahadur Shah Zafar and his sons by Captain Hodson. Even after Aurangzeb, Mughal emperors retained symbolic importance. In the 1857 rebellion, Bahadur Shah Zafar was recognised as a key leader. After suppressing the revolt, the Company exiled him and executed his sons, effectively ending the Mughal lineage's political relevance.


East India Company Comes East

In 1600, the **East India Company** received a royal permission (a **charter**) from Queen Elizabeth I of England. This charter granted the Company the **exclusive right** to trade with countries in the East. This was intended to prevent other English trading groups from competing with the Company in this lucrative market.

Possessing this monopoly, the Company could sail across the oceans to find Eastern lands. Their aim was to buy goods cheaply and sell them in Europe at high prices, maximising profit. This business model, focused on buying low and selling high by eliminating competition, is characteristic of **mercantile** trading companies of that era.

However, the English charter could not prevent other European nations from accessing Eastern markets. By the time the English reached India, the **Portuguese** had already established a presence on the western coast, with their base in Goa. The sea route to India had been discovered by the Portuguese explorer **Vasco da Gama** in 1498.

Soon after, the **Dutch** and the **French** traders also arrived in the Indian Ocean, exploring trade possibilities. This created a competitive environment.

The main challenge was that all these European companies sought to purchase the **same commodities** in India. High-quality **cotton and silk** textiles were in significant demand in Europe, as were spices like **pepper, cloves, cardamom, and cinnamon**.

This intense competition among the companies naturally drove up the prices of these goods in India. As purchase prices increased, the profits the companies could make from selling in Europe decreased. The only viable strategy for the trading companies to maintain profitability was to **eliminate their rivals**.

This pursuit of securing markets led to **fierce conflicts** between the European trading companies throughout the 17th and 18th centuries. They would frequently attack and sink each other's ships, disrupt trading routes, and prevent competitors from transporting goods. Trade was often conducted under **armed protection**, and trading posts were **fortified**.

The Company's efforts to fortify their trading settlements and engage in profitable trade inevitably brought them into **conflict with the local Indian rulers**. This made it increasingly difficult for the Company to separate its commercial activities from political and military actions.

Map showing sea routes from Europe to India in the eighteenth century.

Fig. 2 illustrates the main sea routes connecting Europe to India in the 18th century, typically involving sailing around the Cape of Good Hope in Africa. These routes were vital for the European trading companies to access the profitable markets of the East.


How Trade Led To Battles

The East India Company began its trading operations in Bengal with the establishment of its **first English factory** on the banks of the River Hugli in **1651**. This factory served as a base for the Company's traders, who were known as "factors".

The factory complex typically included a **warehouse** for storing goods meant for export and **offices** for Company officials. As trade expanded, the Company encouraged Indian merchants and traders to settle near the factory for convenience.

To protect their base, the Company started building a **fort** around the settlement in 1696. They also sought greater privileges from the Mughal authorities. In 1698, they **bribed Mughal officials** to obtain **zamindari rights** over three villages, one of which was Kalikata (which grew into the modern city of Kolkata).

Additionally, the Company persuaded the Mughal Emperor **Aurangzeb** to issue a **royal edict (farman)** granting them the right to trade **duty-free**.

The Company continuously sought to expand its concessions and exploit existing privileges. Aurangzeb's farman applied only to the Company's trade, but **Company officials** engaged in **private trade** also refused to pay customs duty. This practice resulted in a significant loss of **revenue for Bengal**.

The **Nawab of Bengal**, Murshid Quli Khan, understandably protested against this loss of revenue and the Company's manipulative practices. This marked the beginning of escalating tensions.

Local boats bringing goods from ships in Madras, painted by William Simpson, 1867.

Fig. 3 illustrates the scene of local boats transferring goods from larger ships in Madras, painted by William Simpson in 1867. This picture highlights the logistical aspects of trade during the colonial era, where goods were moved between ships and shore using smaller local vessels.


The Battle Of Plassey

Throughout the early 18th century, the **conflict between the Bengal nawabs and the East India Company intensified**. Following Aurangzeb's death, the Nawabs of Bengal, like other regional rulers, asserted their **autonomy and power**. Successive Nawabs, including **Murshid Quli Khan, Alivardi Khan, and Sirajuddaulah**, were strong administrators.

These Nawabs resisted the Company's growing power. They:

The Nawabs accused the Company of dishonesty and deceit, claiming it was causing immense revenue loss to Bengal and undermining their authority. They pointed out the Company's refusal to pay taxes and its disrespectful attitude through letters and attempts to humiliate the Nawab and his officials.

The Company, conversely, argued that the local officials' demands were unfair and harming their trade. They insisted that trade could only thrive if duties were abolished. Furthermore, they believed that expanding trade required them to enlarge their settlements, acquire villages, and strengthen their forts.

These unresolved conflicts eventually escalated into military confrontations, culminating in the famous **Battle of Plassey**.

The battle occurred after **Sirajuddaulah** became the Nawab of Bengal in 1756 following Alivardi Khan's death. The Company was concerned by Sirajuddaulah's assertiveness and preferred a **puppet ruler** who would grant easy concessions. Their attempt to support a rival candidate failed, angering Sirajuddaulah.

Sirajuddaulah ordered the Company to cease interfering in political matters, stop fortifying, and pay taxes. When negotiations failed, he marched with his army, captured the English factory at Kassimbazar, seized Company officials, locked the warehouse, disarmed the Englishmen, and blockaded English ships. He then proceeded to Calcutta to take control of the Company's fort there.

Upon hearing the news, the Company officials in Madras dispatched forces led by **Robert Clive**, supported by naval fleets. After lengthy negotiations, Clive led the Company's army against Sirajuddaulah at **Plassey in 1757**.

Sirajuddaulah's defeat was largely due to the **betrayal by his commander, Mir Jafar**. Clive had secretly promised to make Mir Jafar the Nawab if he did not fight. Consequently, Mir Jafar's troops remained inactive during the battle.

The **Battle of Plassey** is historically significant as it was the **first major victory** achieved by the East India Company in India, marking a turning point in their trajectory from traders to rulers.

Portrait of Robert Clive.

Fig. 4 is a portrait of Robert Clive, the commander who led the East India Company forces to victory at the Battle of Plassey. His actions were pivotal in establishing the Company's initial territorial control and financial dominance in Bengal.

The General Court Room, East India House, Leadenhall Street, London.

Fig. 5 shows the General Court Room at East India House in London, where the Court of Proprietors of the East India Company held their meetings. This was the central governing body of the Company, representing the shareholders who were primarily concerned with profitability and increasingly interested in the vast potential wealth from India.

Portrait of Sirajuddaulah, the Nawab of Bengal.

Fig. 6 is a portrait of Sirajuddaulah, the Nawab of Bengal defeated at Plassey. His conflict with the East India Company over trade privileges and sovereignty directly precipitated the battle that paved the way for British dominance in Bengal.


Company Officials Become “Nabobs” (Nawabs)

After the defeat and assassination of Sirajuddaulah at Plassey, **Mir Jafar** was installed as the Nawab, just as Clive had promised. At this point, the Company was still hesitant to take direct administrative responsibility. Their main goal remained the **expansion of trade**. They preferred to achieve this through compliant local rulers who would grant them privileges, rather than through direct conquest.

However, this approach proved difficult. Even the puppet Nawabs found it challenging to fully satisfy the Company's demands while maintaining a semblance of authority and dignity before their own subjects. When Mir Jafar protested the Company's interference, he was removed, and **Mir Qasim** was made the Nawab.

When Mir Qasim also complained, he was defeated in the **Battle of Buxar (1764)**, expelled from Bengal, and Mir Jafar was reinstated. The Nawab was now required to pay a large sum of money ($\textsf{₹}$500,000) to the Company every month. Despite this, the Company's need for funds to finance its wars, meet trade demands, and cover other expenses grew constantly. They desired more territory and revenue.

By the time Mir Jafar died in 1765, the Company's attitude had shifted. Having failed to effectively control puppet Nawabs, Clive declared the necessity for the Company to **"become nawabs ourselves"**.

In 1765, the Mughal Emperor formally appointed the Company as the **Diwan** (chief financial administrator) of the provinces of Bengal. This grant of **Diwani** was a crucial development. It allowed the Company to access and utilise the vast **revenue resources of Bengal**. This resolved a major financial issue the Company had faced.

Previously, the Company had to import **gold and silver from Britain** to purchase most goods in India, as Britain produced little that India wanted to buy. After Plassey, the outflow of gold from Britain decreased, and it virtually stopped after the Company gained the Diwani. Now, the **revenues collected in India** could be used to:

The term "**nabob**" (an anglicised version of 'nawab') came to refer to Company officials who returned to Britain having amassed considerable wealth in India. After the Battle of Plassey, Bengal's Nawabs were compelled to give Company officials personal gifts of land and large sums of money.

**Robert Clive** himself accumulated a significant fortune in India, estimated at £401,102 upon his departure in 1767. Despite being asked to curb corruption when appointed Governor of Bengal in 1764, he faced scrutiny from the British Parliament in 1772 regarding his own wealth. Although acquitted, he later committed suicide.

While many Company officials sought to make their fortune and return to Britain for a comfortable life, not all succeeded. Many died in India due to disease or conflict. Those who did return wealthy often displayed their riches ostentatiously and were sometimes viewed as social climbers or upstarts in British society, becoming subjects of ridicule in popular culture.


Company Rule Expands

The East India Company's expansion of power in India between 1757 and 1857 involved a complex process. The Company rarely launched direct invasions without prior strategic groundwork. Instead, they employed a combination of **political, economic, and diplomatic tactics** to extend their influence before formally annexing an Indian kingdom.

Following the Battle of Buxar (1764), the Company began appointing **Residents** in Indian states. These individuals acted as the Company's political and commercial representatives, tasked with protecting and advancing Company interests. Through the Residents, Company officials started **interfering in the internal affairs** of Indian states, influencing decisions about succession to the throne and appointments to administrative positions.

A key strategy was the imposition of the **"subsidiary alliance"**. Under this system:

A notable example is when Governor-General Richard Wellesley (1798–1805) forced the Nawab of Awadh to cede over half his territory in 1801 for failing to pay for the subsidiary forces. Hyderabad also lost territory under similar circumstances. According to James Mill, the Resident essentially acted as a hidden ruler, allowing the Indian prince autonomy only as long as he remained compliant with British demands.

Tipu Sultan – The “Tiger Of Mysore”

The Company resorted to **direct military action** when its economic or political interests were perceived to be under immediate threat. The southern state of **Mysore** is a prime example of this.

Mysore became a powerful state under leaders like **Haidar Ali** (ruled 1761–1782) and his son **Tipu Sultan** (ruled 1782–1799). Mysore controlled the profitable trade on the **Malabar coast**, where the Company purchased pepper and cardamom.

In 1785, Tipu Sultan took actions that directly challenged the Company's trade:

The British viewed Haidar Ali and Tipu Sultan as **dangerous threats** who needed to be suppressed. This led to a series of **four wars** fought against Mysore (1767–69, 1780–84, 1790–92, and 1799). The Company finally defeated Mysore in the last conflict, the **Battle of Shrirangapatnam** (1799).

**Tipu Sultan was killed** defending his capital, Shrirangapatnam. The British then restored the **former ruling Wodeyar dynasty** to the throne and imposed a **subsidiary alliance** on the state.

Lord Cornwallis receiving Tipu Sultan's sons as hostages, painted by Daniel Orme, 1793.

Fig. 9 depicts Lord Cornwallis receiving Tipu Sultan's sons as hostages after Tipu's defeat in the third Anglo-Mysore War in 1792. Following that treaty, Tipu was forced to hand over two of his sons to the British as a guarantee of peace. British painters often depicted such scenes to glorify British victories and power.

Tipu Sultan's mechanical toy tiger mauling a European soldier.

Fig. 10 shows Tipu Sultan's famous mechanical toy tiger, which depicted a tiger attacking a European soldier. The toy could produce sounds of the tiger roaring and the soldier shrieking. This artefact, now in a London museum, symbolises Tipu's strong anti-British sentiment and his formidable reputation as the "Tiger of Mysore." It was taken by the British after his death in 1799.

War With The Marathas

From the late 18th century, the Company also set its sights on dismantling **Maratha power**. After their defeat in the **Third Battle of Panipat in 1761**, the Marathas' ambition of ruling from Delhi was significantly weakened. The Maratha territory was divided into several states, each under a chief (**sardar**) from powerful dynasties like Sindhia, Holkar, Gaikwad, and Bhonsle.

These states were loosely connected in a **confederacy** led by a **Peshwa** (Principal Minister) who was the effective military and administrative head, based in Pune. Prominent Maratha figures of this period included Mahadji Sindhia and Nana Phadnis.

The Marathas were gradually subdued through a series of wars against the British:

Following these victories, the Company gained complete control over the territories south of the Vindhya mountains.

The Claim To Paramountcy

Beginning in the early 19th century, the Company adopted a more aggressive policy of territorial expansion. Under **Lord Hastings** (Governor-General, 1813–1823), a new policy called **"paramountcy"** was introduced.

This policy asserted that the Company's authority was **supreme or paramount** over all Indian states. Consequently, its power was considered greater than that of any Indian ruler. The Company claimed it was justified in annexing or threatening to annex any Indian kingdom to protect its interests. This aggressive stance remained a guiding principle for later British policies as well.

This expansionist policy did face **resistance**. For example, when the British attempted to annex the small state of Kitoor (present-day Karnataka), **Rani Channamma** led an armed resistance movement. She was arrested and died in prison in 1829. The resistance was continued by **Rayanna**, a chowkidar from Sangoli, who, with popular support, destroyed British camps and records before being caught and hanged in 1830. Numerous other instances of resistance to British annexation occurred across India.

Portrait of Lord Hastings.

Fig. 11 shows a portrait of Lord Hastings, the Governor-General who initiated the aggressive policy of "paramountcy," claiming the East India Company's authority was supreme over Indian states.

A statue of Rani Channamma of Kitoor in Karnataka.

Fig. 12 depicts a statue of Rani Channamma of Kitoor, Karnataka. She is remembered as a key figure who resisted the British annexation of her state, symbolising early Indian defiance against Company rule.

The Doctrine Of Lapse

The final phase of major annexations occurred under **Lord Dalhousie** (Governor-General, 1848–1856). He devised a policy known as the **Doctrine of Lapse**.

According to this doctrine, if an Indian ruler died **without a natural male heir**, his kingdom would automatically **"lapse"** or be taken over by the Company, becoming part of British territory. This policy was aggressively applied, leading to the annexation of several states:

Finally, in 1856, the Company annexed **Awadh**. For Awadh, they used an additional justification, claiming they were acting out of a sense of **"duty"** to liberate the people from the perceived **"misgovernment"** of the Nawab. This humiliating deposition of the Nawab deeply angered the people of Awadh and contributed significantly to their participation in the widespread revolt that erupted in 1857.

Maharaja Ranjit Singh holding court.

Fig. 13 shows Maharaja Ranjit Singh holding court. The powerful Sikh kingdom under Maharaja Ranjit Singh initially deterred the British from annexing Punjab. His death in 1839 paved the way for two Anglo-Sikh wars, resulting in the British annexation of Punjab in 1849.

Portrait of Veer Surendra Sai.

Fig. 14 is a portrait of Veer Surendra Sai, another figure who resisted British expansion. The text does not elaborate on his specific actions, but his inclusion suggests his importance in the history of resistance against colonial rule.

Map of India showing British territories in 1797.

Fig. 14a shows the extent of British territorial control in India in 1797. Comparing this map with later ones (Figs. 14b and 14c) visually demonstrates the rapid expansion of Company rule.

Map of India showing British territories in 1840.

Fig. 14b shows the expansion of British territories by 1840, illustrating the significant acquisitions made through wars (like those against Mysore and the Marathas) and alliances (like the subsidiary alliance).

Map of India showing British territories in 1857.

Fig. 14c shows the final state of British territorial control just before the 1857 revolt. This map highlights the impact of policies like paramountcy and the Doctrine of Lapse, which brought a large portion of the subcontinent under direct or indirect British control.


Setting Up A New Administration

With the expansion of its territorial control, the Company needed to establish a formal administrative system. **Warren Hastings** (Governor-General, 1773–1785) played a key role in shaping this new administration. By his time, the Company held power in Bengal, Bombay, and Madras.

The British territories were organised into administrative units called **Presidencies**. There were three main Presidencies: **Bengal, Madras, and Bombay**. Each Presidency was headed by a **Governor**. The overall head of the Company's administration in India was the **Governor-General**. Warren Hastings, the first Governor-General, implemented significant reforms, particularly in the **judicial system**.

From 1772, a new judicial structure was introduced. Each district was mandated to have two courts:

European district collectors presided over the civil courts, assisted by Maulvis and Hindu Pandits who interpreted Indian laws (based on Dharmashastras). The criminal courts were under the jurisdiction of a **Qazi** (judge) and a **Mufti** (jurist who explained the law), but they operated under the overall supervision of the district collectors.

A challenge in the judicial system was the varying interpretations of local laws by Brahman pandits based on different schools of Dharmashastra. To create a more uniform system, a compilation of Hindu laws was prepared by eleven pandits in 1775 and translated into English by N.B. Halhed. A code of Muslim laws was also compiled by 1778 for the use of European judges.

Under the **Regulating Act of 1773**, a new **Supreme Court** was established in Calcutta. Additionally, a court of appeal, the **Sadar Nizamat Adalat**, was also set up in Calcutta.

The most important British official in an Indian district became the **Collector**. His primary responsibilities were collecting **revenue and taxes** and maintaining **law and order** within his district. He achieved this with the support of judges, police officers, and local police officials (**darogas**).

The Collector's office, known as the **Collectorate**, emerged as the new central hub of power and influence, gradually replacing the authority of previous local power holders.

The trial of Warren Hastings in the British Parliament, painted by R.G. Pollard, 1789.

Fig. 15 shows the trial of Warren Hastings in the British Parliament. Upon his return to England in 1785, Hastings faced charges of misconduct and misgovernment in Bengal brought by Edmund Burke. This led to a lengthy impeachment trial, highlighting the growing scrutiny of Company officials' actions and wealth back in Britain.


The Company Army

Although the British introduced administrative reforms, the foundation of their colonial power in India was their **military strength**. The Mughal army traditionally relied heavily on **cavalry (sawars)** and **infantry (paidal)**. Mughal soldiers were trained in archery and swordsmanship, with cavalry forming the dominant branch. There was less emphasis on a large, professionally trained infantry; instead, armed peasants and local zamindars often provided foot soldiers.

This structure began to change in the 18th century. Regional successor states, such as Awadh and Banaras, started recruiting peasants and training them as professional soldiers. The East India Company adopted this practice, building its own army, which came to be known as the **sepoy army**. The term "sepoy" comes from the Indian word **'sipahi'**, meaning soldier.

Changes in military technology from the 1820s further altered the composition of the Company army. As the British fought wars in different regions like Burma, Afghanistan, and Egypt, their soldiers began using muskets and matchlocks, requiring more trained infantry. Consequently, the importance of cavalry in the Company's army decreased, while **infantry regiments** became more significant.

In the early 19th century, the British worked to create a **uniform military culture**. Soldiers received European-style **training, drill, and discipline**. This rigorous regimen imposed strict rules and significantly changed the soldiers' lives.

However, this attempt to create a purely professional force often disregarded the soldiers' **caste and community identities and feelings**. This created tensions, as it was difficult for individuals to shed these deeply ingrained aspects of their identity and see themselves solely as generic soldiers. The feelings and reactions of the sepoys to these changes in their lives and sense of self played a significant role in events such as the **Revolt of 1857**, which provides crucial insights into their world.

A sawar (cavalry soldier) from Bengal in the service of the Company, painted by an unknown Indian artist, 1780.

Fig. 16 shows a Bengal cavalry soldier in the service of the East India Company, painted by an Indian artist in 1780. Following battles against strong Indian states like the Marathas and Mysore, the Company recognised the need to strengthen both its infantry and, as this image suggests, its cavalry forces.