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FROM TRADERS TO RULERS – PART 1

By the middle of the 17​th​ century several European trading companies had settled in
India and were trading in Indian goods like spices, textiles, precious stones etc. These
goods were very popular in the West and fetched them large profits.​ The Mughal rulers
encouraged these European traders as trade with them brought revenue for the empire.
The Portuguese were the first to come to India followed by the Dutch, the Danes, the
English and the French. Taking permission from the Mughals they set up trading posts
in different parts of India.

By the 18​th​ century the English had established trade settlements in Calcutta, Madras
and Bombay​ while the​ French had settlements in Chandannagar, Pondicherry, Mahe
and Karaikal.​ The Portuguese, the Dutch and the Danish companies gradually lost their
monopoly over Indian trade.
As the Mughal Empire became weak, and started to disintegrate, political instability set
in. Taking advantage of the situation, both the English and the French were determined
to establish their trade monopoly in India. An intense competition followed.​ The
commercial rivalry between the French and the British in India was aggravated by the
fact that these two countries were political rivals in Europe as well. ​Between 1744 and
1763, the British and the French were involved in two wars in Europe. ​This intensified
their trade rivalry in India and led to three major wars in India, called the Carnatic Wars.
Carnatic was the name given to the Coromandel Coast and its hinterland. The British
came out victorious in the end due to the following reasons:

➢ T
​ he British Government was progressive and it gave full support to

the British Company in India.


➢ ​The British were financially stronger and they had larger and better

fortified settlements in Calcutta, Bombay and Madras.


➢ They had the strongest army in the world which enabled them to
send supplies and reinforcements wherever needed.
➢ ​They had efficient generals with excellent leadership qualities like

Robert Clive.
➢ The conquest of the prosperous province of Bengal in 1757 provided
the British with an additional source of wealth and helped them win
against the French.

A Map showing the Carnatic region where the Anglo- French rivalry took place
RISE OF BRITISH POWER IN BENGAL

In the 18​th​ century, Bengal was the richest and most fertile province in India.
There were several reasons for this:

● Bengal had a flourishing trade with China and the Far East.

● Bengal had not torn apart by revolts that frequently occurred


in different parts of North India.
● ​The early nawabs of Bengal like Murshid Quli Khan and
Alivardi Khan were extremely efficient and powerful and they
kept a strict control over the British Company.

In 1756, Alivardi Khan was succeeded by Siraj-ud-daulah. He resented


the wealth and growing power of the British in Bengal so he ordered them
to pay taxes like other Indian merchants​. ( ​It must be mentioned here that
the Mughal emperor in 1717, had granted the English East India
Company, the right to import and export goods from Bengal without paying
taxes, in exchange of a large sum of money​.) So , the British refused to
follow the orders of Siraj. In fact, they went against the Nawab’s orders
and began to extend their fortifications at Fort William. Siraj marched to
Calcutta and drove out the British. But Robert Clive soon took charge of
the Company’s forces in Bengal and recaptured Calcutta.

BATTLE OF PLASSEY (1757)

Robert Clive now began to hatch a plot with some of the influential men in
the Nawab’s court to overthrow Siraj. He promised to make Mir Jafar, the
commander-in –chief of the Siraj’s army, the next Nawab of Bengal in
return for a large sum of money and trading privileges. Then ​the British
met Siraj in the Battle at Plassey near Murshidabad on 23​rd​ June, 1757.
Though Siraj had a larger army, part of it was led by Mir Jafar who was
already allied with the British. So, this section did not fight and Siraj was
defeated. He tried to escape but was captured and killed.

Nawab Siraj-ud-daulah
Robert Clive

SIGNIFICANCE OF THE BATTLE OF PLASSEY

➔ It marked the beginning of British rule in India.


➔ ​It transformed a mere trading company into a political


power in Bengal.
➔ It placed the vast resources of Bengal in the hands of
the British and enabled them to win the Carnatic Wars.
➔ It exposed the hollowness of the Indian political system.

Mir Jafar was made the Nawab of Bengal and for this he had to
give the following to the Company:

● A large sum of money.


● Zamindari of Twenty-four Parganas.


● Rights to free trade.

Mir Jafar’s conspiracy proved to be disastrous for the country. The British
now began to vigorously interfere in the affairs of Bengal. ​Mir Jafar was
reduced to a puppet ruler​ and when he could not meet the heavy
monetary demands of Company, ​he was deposed and his son-in-law Mir
Qasim was made the new Nawab.

In return, Mir Qasim gave to the Company the Zamindari rights of


Burdwan, Midnapore and Chittagong. But Mir refused to be a puppet in
the Company’s hands.
In fact, he was the last Nawab of Bengal to assert his authority. He did it
by taking the following steps:

★ H
​ e shifted his capital from Murshidabad (which was

close to Calcutta)to Munger in Bihar.


★ He removed all officials who had close connection with
the British.
★ He hired other Europeans to train his soldiers.
★ ​He built an ammunition factory.

★ ​He placed limits on the trading privileges of the

Company.

All these made the Company furious and it declared war on Mir
Qasim and defeated him in 1763 and Mir Jafar was restored as the
Nawab of Bengal. But Mir Qasim did not give up. ​He entered into
an alliance with Nawab Shuja-ud-daulah of Awadh and Emperor
Shah Alam II who was living in Awadh then. Their combined forces
were badly defeated by the Company in 1764 at the Battle of Buxar
and Mir Qasim was killed.

Robert Clive had returned to India as the Governor of Bengal at this


time. In 1765 he signed the Treaty of Allahabad with
Shuja-ud-daulah and Shah Alam II.

TREATY OF ALLAHABAD (1765) -

According to the terms of this Treaty:

❏ A
​ wadh was returned to Shuja-ud-daulah but the

districts of Kora and Allahabad were taken away from


him.
❏ ​He had to pay a war indemnity of 50 lakh rupees to
the Company.
❏ The British agreed to defend Shuja-ud-daulah against
his enemies but the Nawab would have to pay for the
British troops stationed at Awadh. ​Awadh was thus
turned into a buffer (neutral) state between the British
in Bengal and the Marathas.
❏ The British gave Shah Alam II, the districts of Kora
and Allahabad and an annual pension of 26 lakh
rupees.
❏ In return Shah Alam II had to grant to the Company,
the ‘Diwani’ (the right to collect taxes) of Bengal, Bihar
and Orissa.

Clive introduced a system of ​Dual Government in Bengal​ in which the


British would have full control over revenue collection and military
administration while the Nawab would be responsible for general
administration and maintenance of law and order. In other words,​ ​the
Company enjoyed power without any responsibility, while the Nawab had
the responsibility of running the administration without the required
resources. ​The people of Bengal suffered under this evil system till 1772
and Bengal’s economy was ruined while the Company went on
prospering.

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