East India Company's Involvement in the Subcontinent

Even before the Mughal Empire went into decline, Europeans were casting envious eyes on India’s wealth. The Portuguese established a base in Goa in 1510, but it was the British who were most determined to establish trading bases in India.

East India Company

In 1600, the English Queen, Elizabeth I, granted permission to a group of merchants to set up the East India Company (EIC). The British government did not send out its own expeditions to carry out its own trading. Instead, it gave permission to groups of individuals to do this. The government did, however, make sure that these groups operated in a way which was acceptable to the government.

The EIC was given monopoly in trade between Britain and areas east of Africa. That meant that no other British company could trade in that area. The merchants were hoping to break into the spice trade in the East Indies (modern day Indonesia), but the Dutch had already won control of the spice trade and would not let any other European power share it.

Therefore, the East India Company turned to India as an alternative. They first landed in Surat in 1608; but it was not until 1612 that they were given the firman to begin trading. When the Governor of Gujarat, the future Shah Jehan, granted this permission for trade, he could not have imagined that one day the British would end up ruling all of India.

Influence Grows

The British influence in India grew slowly. At first, the EIC had just a few bases on the Indian coast; but by 1664, they had established their headquarters in Bombay. In 1690, a trading post was established at Calcutta. The EIC purchased spices, silks and cotton from the Indians and trade was so profitable that the company soon had its own huge private army to protect the trading posts.

By the early eighteenth century, the EIC had three main bases; Bombay, Calcutta and Madras. The company began to refer to these as presidencies and they were later to become the major provinces of British India.

At first, the arrival of the British merchants brought benefits not only to the British, but also to the Mughal Empire. Indian merchants were able to sell their goods and became wealthy from the large amounts of silver being sent out from Britain to pay for them. At this time, the British imported Indian goods, but did not export much to India. However, Britain began to develop plans for growth which would lead to direct competition with the Mughal Emperor.

By the end of the seventeenth century, the East India Company was talking about English dominion for all time to come. It even had the audacity to go to war with Aurangzeb in 1686. He defeated the company’s forces and pardoned them only after they had apologized for the ill crimes they may have done. The company was also forced to pay a heavy fine.

However, the EIC was more successful in fighting against other Europeans nations, who wanted the opportunity to share in the highly profitable Indian trade. During the seventeenth century, both the Portuguese and the Dutch were defeated, but the main rivalry came from the French. They had set up their trading company in 1664 and soon came into conflict with the EIC.

The military skills of the British general, Robert Clive, enabled the EIC to defeat the French and take advantage of India’s unsettled conditions to increase British influence and control. It slowly began to expand its forces to make local Indian princes accept its authority and was, thus, able to set up its own government in parts of India.

Reasons for its Involvement

To oust the Dutch and the Portuguese:

The British wanted to establish their influence in the subcontinent and to oust the Dutch and the Portuguese. The East India Company feared that the French and the Portuguese would initiate trade in India and would have monopoly over trade in the subcontinent. The Dutch had already achieved monopoly over trade in the East Indies, so, as an alternative, the company turned to India.

Wanted to Establish a Strategic Port in the Subcontinent:

The British wanted to establish a strategic port in the subcontinent that would protect its trading interests there and in the Far East. It would give regional supremacy to the British and Royal Navy. They would control the sea routes and, hence, trade with the East.

Availability of Raw Materials, Silk, Cotton and Spices, etc.:

Trade, profit and power were the real motives that East India Company (EIC) was looking at. Raw materials, including spices, silk, yarn, cloth, cotton and goods of metalworkers, were very demanding in the European markets. British factories needed raw materials while British merchants needed big markets like India to sell their industrial products. Cotton was the main raw material for the textile industries in Britain. The East India Company was having a very profitable future in trade with India. Indian soldiers at very cheap wages were available to protect their trade and profits.

Spread their Culture and Religion:

The company also wanted to westernize the Indians. The British believed that western culture is superior and must be spread in the world. They thought themselves the most civilized nation of the world. They wanted to spread their religion, Christianity. They denied the fact that they came here to do so, but, in reality, they forcibly converted the locals into Christians. Christian Missionaries were called for this purpose. Churches were established all over India. British thought that they had a superior culture and Indians were uncivilized. They considered it their prime duty to spread their culture over there in the subcontinent.

Reports of Immense Wealth in the Subcontinent:

Reports of immense wealth in the subcontinent meant the British wanted to establish a trading base there as they saw a profitable future. Despite the highly profitable trade and very cheap raw materials, India had a lot of wealth. Bengal was the richest province and EIC exploited it to its fullest creating famine. One thousand million pounds were taken from the Banks of Ganges and deposited on the Bank of Thames in 150 years.