

The Beginning of from Trade to Territory
The Mughal Empire ruled from the early 16th century to half of the 19th century on most of the Indian Territory. When the powerful Mughal Emperor, Aurangazeb died, his Mughal generals and subheaders started fighting for the throne and their power. From trade to territory the company established power in India in the 18th century and they were establishing their power in the country. Governing power of the country was taken by the powerful Britishers after the fall of the Mughal Empire.
When Britishers came to India they came with the purpose of trade but they became powerful and ruled on our land for a long period of time. In this article, we will learn about the series of events that gave the governance power of our country to the British and it is beneficial for the students in form of from trade to territory NCERT solutions.
The East India Company Comes to India
In the year 1600, the royal charter granted by the ruler of England, Queen Elizabeth I gave the right to the Britishers to trade with India. The Charter gave permission to the East India Company. The East India Company used to buy Indians good bought goods at very cheap prices and then in Europe they sold them at a high price. At that time, silk and cotton produced in our country had a big market in Europe. Indian spices such as cinnamon, pepper, cardamom and cloves were in great demand.
Trade-in Bengal
The first English factory was established in the year 1651 on the banks of river Hugli. In 1717 Mughal king of that time Farruk Siyar granted a “farman” to the English company the gave them the right to trade free duty. But the Company was not satisfied with only trade free duty. It tried to create pressure for more concessions and manipulate the existing privileges. These unfair practices of trade gradually led the company to battles.
Trade Leading to Battles
The conflict between the Nawab and the company increased. Later the Nawab refused to give any concessions, the right of mint coins and demanded tributes for the right to trade to the company concessions. The nawab also claimed that the company was undermining the authority of the nawab and denying revenue. After the battle of Plassey, these conflicts culminated. The two famous battles that were fought between the Indian Nawabs and the company are as follows.
The Battle of Plassey
This Battle took place in 1757. Siraj-ud-daulah became the Nawab of Bengal. Robert Clive led the army of the Company against the Nawab of Bengal at Plassey. The British won the battle. Mir Jafar and his army did not participate in the battle because Clive promised that after the death of Siraj-ud-daulah he would give the title of Nawab to Mir Jafar which became a major reason for the defeat of the Siraj-Ud-Daulah.
The Battle of Buxar
Mir Jafar was made the Nawab of Bengal by the Britishers after the battle of Plassey. He worked as a puppet whose threads were in the hands of the British. The battle of Buxar was fought between the British and Mir Qasim in 1764. The East India Company started dealing with the matter of Diwani of Bengal and its provinces after the death of the Mir Jafar. Robert Clive became the Governor of Bengal in 1765.
Expansion of Company Rule
The East India Company started directly attack through its military power on Indian territories by applying means of different political, economic and diplomatic methods. The company appointed many political or commercial agents as residents in states of India who work for the interests of the company. Indian Kings lose the right of having their own armed forces and their forces would be protected by the company as the company established a subsidiary alliance.
Tipu Sultan: Tiger of Mysore
Mysore gained power under the leadership and guidance of Tipu Sultan (Tiger of Mysore) and Haider Ali. The Company purchased pepper and cardamom by controlling the trade-in Malabar coast. Tipu Sultan refused to have any trade of pepper, cardamom and sandalwood in 1785, the company fought four wars with Mysore and in the last battle of Seringapatam achieved victory.
Claim to Paramountcy and Doctrine of Lapse
A new policy called paramountcy was initiated under Lord Hasting leadership because of that the company gained immense power. Lord Dalhousie established the doctrine of Lapse in India, according to that if an Indian king or ruler died without any male heir his kingdom would be declared “lapse” and it will eventually become part of Company territory. The company expanded and gained power in Bengal under the guidance of Warren Hastings.
Do You Know?
The silk, cotton, pepper, cloves, cardamom and cinnamon were high in demand in Europe. The British, Dutch, French and Portuguese were interested in trade with India which led to fierce battles between the trading companies.
The East India Company gained control in India on 63% of the territory and 78% of the population of Indians by 1857.
Conclusion
Hence we observed the series of events that were responsible for the transformation of the East India Company from a trading company to territorial colonial power. The above article is helpful for the students in form of from trade to territory NCERT solutions. After going through the whole article students would be able to solve extra questions from trade to territory.
FAQs on From Trade to Territory: The East India Company & Expansion of Company Rule
1. What were the main attractions for European trading companies in India during the 17th and 18th centuries?
European trading companies were primarily attracted to India for economic reasons. The main attractions included:
- High-Quality Goods: India was renowned for its fine quality cotton and silk, which had a huge market in Europe.
- Spices: Indian spices such as pepper, cloves, cardamom, and cinnamon were in great demand across Europe.
- Profit Margins: These companies could buy goods at very low prices in India and sell them in Europe for exceptionally high profits, leading to immense wealth.
- New Trade Routes: The quest for new lands and exclusive trade routes was a major driving force for European powers to establish a presence in India.
2. How was the Battle of Plassey a crucial turning point for the East India Company in India?
The Battle of Plassey in 1757 was a decisive victory that marked the beginning of the Company's transformation from a trading body to a political power. It was a turning point because it wasn't just a military victory but a strategic one achieved through conspiracy. After defeating Siraj-ud-daulah, the Nawab of Bengal, the Company installed a puppet ruler, Mir Jafar. This gave them immense political influence and, most importantly, control over the vast revenues of Bengal, which they used to finance their military and further expansion across India.
3. How did the East India Company transition from being a trading entity to a ruling power?
The transition of the East India Company from trade to territory was a gradual process that involved several strategies:
- Military Conquests: Key victories like the Battle of Plassey (1757) and the Battle of Buxar (1764) gave the Company direct control over rich territories.
- Political Interference: The Company began appointing political agents called 'Residents' in Indian states to interfere in internal affairs and influence decisions.
- Annexation Policies: The Company used policies like the Subsidiary Alliance and the Doctrine of Lapse to annex Indian kingdoms, forcing them to cede territory or accept British authority.
- Gaining Diwani Rights: After the Battle of Buxar, the Company acquired the 'Diwani' rights for Bengal, allowing it to collect revenue and administer civil justice, effectively making it the financial administrator of the province.
4. What were the Diwani rights, and how did they benefit the East India Company?
The Diwani rights were the authority to collect revenues and decide on civil cases in a territory. The Mughal emperor granted these rights for Bengal to the East India Company in 1765. This was immensely beneficial for the Company as it solved their biggest financial problem. Before this, they had to import gold and silver from Britain to buy Indian goods. After gaining Diwani, they could use the vast revenues collected from Bengal to finance their expenses, purchase Indian goods for export, and maintain their army, all without spending their own money.
5. What was the role of a British 'Resident' in an Indian state under the Subsidiary Alliance system?
Under the Subsidiary Alliance system, a British 'Resident' was a political or commercial agent appointed to the court of an Indian ruler. While their official purpose was to represent British interests, their actual role was to interfere in the internal affairs of the state. The Resident ensured that the Indian ruler acted according to British interests, influenced the appointment of ministers, and effectively undermined the ruler's sovereignty. The ruler was not allowed to maintain their own army or form alliances without the Resident's approval, making the state dependent on the Company for protection and administration.
6. What was the 'policy of paramountcy' initiated by the Company?
The policy of paramountcy was initiated in the early 19th century under Governor-General Lord Hastings. According to this policy, the Company claimed that its authority was 'paramount' or supreme, and therefore its power was greater than that of any Indian state. To protect its interests, the Company justified annexing or threatening to annex any Indian kingdom. This policy was a clear declaration that the British considered themselves the highest power in the subcontinent and would not hesitate to use force to assert their dominance over local rulers.
7. What is the difference between the Subsidiary Alliance and the Doctrine of Lapse as tools for British expansion?
Both the Subsidiary Alliance and the Doctrine of Lapse were key policies for British expansion, but they worked differently:
- Subsidiary Alliance: This was a political agreement. Indian rulers were forced to accept British military protection and pay for its maintenance. In return, they had to dissolve their own armies and have a British Resident in their court. It was a method of indirect control that eventually led to annexation if the ruler failed to pay.
- Doctrine of Lapse: This was a policy of annexation. Introduced by Lord Dalhousie, it stated that if an Indian ruler of a dependent state died without a natural male heir, their kingdom would automatically be annexed by the British. It was a direct method of taking over territories without a major war, as seen in cases like Satara, Nagpur, and Jhansi.
In essence, Subsidiary Alliance established control, while the Doctrine of Lapse was a pretext for direct annexation.
8. How did the weakening of the Mughal Empire contribute to the rise of the East India Company's power?
The decline of the Mughal Empire after the death of Emperor Aurangzeb in 1707 created a power vacuum in India. With no strong central authority, many regional kingdoms and local chieftains emerged and began fighting among themselves. This political fragmentation was a golden opportunity for the East India Company. The Company exploited the rivalries between Indian rulers, siding with one against another to gain political and commercial advantages. The absence of a unified force capable of challenging them allowed the Company to gradually expand its influence and territory, playing the role of a 'kingmaker' and eventually becoming the king itself.

















