NCERT 8 HISTORY CHAPTER 2

2. From Trade to Territory


  • Aurangzeb was the last powerful Mughal ruler
  • During 1857 Revolt, the Mughal emperor Bahadur Shah was forced to leave the kingdom, his sons were shot dead 
  • 1600 - Mercantile trading company (East India Company) acquired a Royal Charter from Queen Elizabeth I
  • With the charter, then the British had no competition with other English trading companies
  • But a portuguese explorer, Vasco-da-Gama discovered this sea route in 1498 and also Dutch and the French also arrived for trade
  • Competition between the English and the French led to the Carnatic wars.
  • Carnatic war I (1740-48) - Treaty of Aix-La-Chapelle
  • Carnatic war II(1749-54) -Treaty of Pondicherry
  • Carnatic war III (Battle of Wandiwash) (1758-63) - Treaty of Peace of Paris
  • With the issue of farman - the East India Company began to trade with duty free
  • Then the conflict between the British and the Nawab of Bengal led to the Battle of Plassey in 1757
  • Nawab was defeated because his commander Mir Jafar never fought the battle


  • After the victory, Mir Jafar became a puppet nawab then he protested, the company instilled Mir Qasim. When Mir Qasim complained, the Battle of Buxar happened in 1764

  • After the victories of these two battles, the British secured the nizamat and the Diwani
  • Some company officials succeeded in making money. Robert Clive left India with forture worth £ 401,102
  • Those who return with wealth led flashy lives - were called "nabobs" 
  • Then the company followed the process of annexation (subsidiary alliance) and began to interfere in the internal affairs of Indian states
  • With subsidiary alliance, the Indian rulers were compelled to depend on British forces and to pay a subsidy for its maintenance 
  • When the Nawab of Awadh failed to pay, he was forced to give over half of his territory to the company
  • Powerful rulers like Haider Ali and his son Tipu Sultan (The "Tiger of Mysore") controlled the English profitable trade on malabar coast
  • Anglo-Mysore War I(1767-69) - Treaty of Madras
  • Anglo-Mysore War II(1780-84) - Treaty of Mangalore
  • Anglo-Mysore War III (1790-92) - Treaty of Seringapatnam
  • Anglo-Mysore War IV (1799) - Mysore is conquered by British forces
  • Marathas were ruled by different chiefs(Sardars) such as the Sindhia of Gwalior, the Holkar of  Indore, the Gaikwad of Baroda, the Bhonsole of Nagpur under the Peshwa of Poona
  • Series of Maratha war were fought :
  • Anglo-Maratha War I (1775-82) - Treaty of Salbai
  • Anglo-Maratha War II (1803-05) - Treaty of Bassein (1802)
  • Anglo-Maratha War III(1817-19) - Treaty of Poona and Treaty of Gwalior (1817) and treaty of Mandasor (1818)
  • Hastings initiated a new policy of Paramountcy, the company claimed that its authority was supreme
  • Rani Channamma led an anti-British resistance movement, when the British tried to annex the small state of Kitoor
  • Then the East India Company worried about the Russian entry, inorder to secure their control, they had a prolonged war with Afghanistan (1838-42)
  • After the death of Ranjith Singh, two wars were fought with sikhs 
  • Anglo-Sikh War I (1845-46) - Treaty of Lahore
  • Anglo-Sikh War II (1848-49)
  • Lord Dalhousie introduced "Doctrine of Lapse" which eventually led to the first war of independence(1857)
  • British divided India into administrative units called Presidencies; The three Presidencies were Bengal, Madras and Bombay
  • Two courts were established; a criminal court(faudari adalat) and a civil court (diwani adalat)
  • Under the Regulating Act(1773) - a new supreme court was established
  • Collectors were appointed to collect revenue and taxes and to maintain law and order
  • In early 19 CE, the British began to establish European-style training, drill and discipline to develop a uniform military culture
  • Thus, the East India Company transformed from trade to territory
  • Invention of new steam technology in early 19 CE, reduced the journey time to India to three weeks
  • By 1857, the company exercised direct rule over 63% of the territory and 78% of population of India

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