The East India Company (EIC), also known as the Honourable East India Company (HEIC) or the British East India Company and informally as John Company, Company Bahadur, or simply The Company, was an English and later British joint-stock company. It was formed to trade in the Indian Ocean region, initially with Mughal India and the East Indies (Maritime Southeast Asia), and later with Qing China. The company ended up seizing control over large parts of the Indian subcontinent, colonised parts of Southeast Asia, and colonised Hong Kong after a war with Qing China.
Originally chartered as the "Governor and Company of Merchants of London trading into the East Indies", the company rose to account for half of the world's trade, particularly in basic commodities including cotton, silk, indigo dye, salt, spices, saltpetre, tea, and opium. The company also ruled the beginnings of the British Empire in India. In his speech to the House of Commons in July 1833, Lord Macaulay explained that since the beginning, the East India company had always been involved in both trade and politics, just as its French and Dutch counterparts had been.
The company received a Royal Charter from Queen Elizabeth I on 31 December 1600, coming relatively late to trade in the Indies. Before them the Portuguese Estado da Índia had traded there for much of the 16th century and the first of half a dozen Dutch Companies sailed to trade there from 1595. These Dutch companies amalgamated in March 1602 into the United East Indies Company (VOC), which introduced the first permanent joint stock from 1612 (meaning investment into shares did not need to be returned, but could be traded on a stock exchange). By contrast, wealthy merchants and aristocrats owned the EIC's shares. Initially the government owned no shares and had only indirect control until 1657 when permanent joint stock was established.
During its first century of operation, the focus of the company was trade, not the building of an empire in India. Company interests turned from trade to territory during the 18th century as the Mughal Empire declined in power and the East India Company struggled with its French counterpart, the French East India Company (Compagnie française des Indes orientales) during the Carnatic Wars of the 1740s and 1750s. The battles of Plassey and Buxar, in which the British defeated the Bengali powers, left the company in control of Bengal and a major military and political power in India. In the following decades it gradually increased the extent of the territories under its control, controlling the majority of the Indian subcontinent either directly or indirectly via local puppet rulers under the threat of force by its Presidency armies, much of which were composed of native Indian sepoys.
By 1803, at the height of its rule in India, the British East India company had a private army of about 260,000—twice the size of the British Army, with Indian revenues of £13,464,561 (£1,359,675,850.80 as of 2018), and expenses of £14,017,473 (£1,415,509,909.85 as of 2018). The company eventually came to rule large areas of India with its private armies, exercising military power and assuming administrative functions. Company rule in India effectively began in 1757 and lasted until 1858, when, following the Indian Rebellion of 1857, the Government of India Act 1858 led to the British Crown's assuming direct control of the Indian subcontinent in the form of the new British Raj.
Despite frequent government intervention, the company had recurring problems with its finances. It was dissolved in 1874 as a result of the East India Stock Dividend Redemption Act passed one year earlier, as the Government of India Act had by then rendered it vestigial, powerless, and obsolete. The official government machinery of British India assumed the East India Company's governmental functions and absorbed its navy and its armies in 1858.
|East India Company (EIC)|
Coat of arms (1698)
|Industry||International trade, Opium trafficking|
|Fate||Government of India Act 1858|
|Founded||31 December 1600|
|Founders||John Watts, George White|
|Defunct||1 June 1874|
|Products||Cotton, silk, indigo dye, salt, spices, saltpetre, tea, and opium|
Imperial entities of India
|Casa da Índia||1434–1833|
|Portuguese East India Company||1628–1633|
|East India Company||1612–1757|
|Company rule in India||1757–1858|
|British rule in Burma||1824–1948|
|Partition of India|
Soon after the defeat of the Spanish Armada in 1588, the captured Spanish and Portuguese ships with their cargoes enabled English voyagers to potentially travel the globe in search of riches. London merchants presented a petition to Queen Elizabeth I for permission to sail to the Indian Ocean. The aim was to deliver a decisive blow to the Spanish and Portuguese monopoly of Far Eastern Trade. Elizabeth granted her permission and on 10 April 1591 James Lancaster in the Bonaventure with two other ships sailed from Torbay around the Cape of Good Hope to the Arabian Sea on one of the earliest English overseas Indian expeditions. Having sailed around Cape Comorin to the Malay Peninsula, they preyed on Spanish and Portuguese ships there before returning to England in 1594.
The biggest capture that galvanised English trade was the seizure of the large Portuguese Carrack, the Madre de Deus by Sir Walter Raleigh and the Earl of Cumberland at the Battle of Flores on 13 August 1592. When she was brought in to Dartmouth she was the largest vessel that had been seen in England and her cargo consisted of chests filled with jewels, pearls, gold, silver coins, ambergris, cloth, tapestries, pepper, cloves, cinnamon, nutmeg, benjamin, red dye, cochineal and ebony. Equally valuable was the ship's rutter containing vital information on the China, India, and Japan trades. These riches aroused the English to engage in this opulent commerce.
In 1596, three more English ships sailed east but were all lost at sea. A year later however saw the arrival of Ralph Fitch, an adventurer merchant who, along with his companions, had made a remarkable fifteen-year overland journey to Mesopotamia, the Persian Gulf, the Indian Ocean, India and Southeast Asia. Fitch was then consulted on the Indian affairs and gave even more valuable information to Lancaster.
On 22 September 1599, a group of merchants met and stated their intention "to venture in the pretended voyage to the East Indies (the which it may please the Lord to prosper), and the sums that they will adventure", committing £30,133. Two days later, "the Adventurers" reconvened and resolved to apply to the Queen for support of the project. Although their first attempt had not been completely successful, they nonetheless sought the Queen's unofficial approval to continue. They bought ships for their venture and increased their capital to £68,373.
The Adventurers convened again a year later, on 31 December, and this time they succeeded; the Queen granted a Royal Charter to "George, Earl of Cumberland, and 215 Knights, Aldermen, and Burgesses" under the name, Governor and Company of Merchants of London trading with the East Indies. For a period of fifteen years, the charter awarded the newly formed company a monopoly on English trade with all countries east of the Cape of Good Hope and west of the Straits of Magellan. Any traders in breach of the charter without a licence from the company were liable to forfeiture of their ships and cargo (half of which went to the Crown and the other half to the company), as well as imprisonment at the "royal pleasure".
The governance of the company was in the hands of one governor and 24 directors or "committees", who made up the Court of Directors. They, in turn, reported to the Court of Proprietors, which appointed them. Ten committees reported to the Court of Directors. According to tradition, business was initially transacted at the Nags Head Inn, opposite St Botolph's church in Bishopsgate, before moving to India House in Leadenhall Street.
Sir James Lancaster commanded the first East India Company voyage in 1601 aboard the Red Dragon. After capturing a rich 1,200 ton Portuguese Carrack in the Malacca Straits the trade from the booty enabled the voyagers to set up two "factories" – one at Bantam on Java and another in the Moluccas (Spice Islands) before leaving. They returned to England in 1603 to learn of Elizabeth's death but Lancaster was Knighted by the new King James I. By this time the war with Spain had ended but the Company had successfully and profitably breached the Spanish and Portuguese monopoly, with new horizons opened for the English.
In March 1604, Sir Henry Middleton commanded the second voyage. General William Keeling, a captain during the second voyage, led the third voyage aboard the Red Dragon from 1607 to 1610 along with the Hector under Captain William Hawkins and the Consent under Captain David Middleton.
Early in 1608 Alexander Sharpeigh was appointed captain of the company's Ascension, and general or commander of the fourth voyage. Thereafter two ships, Ascension and Union (captained by Richard Rowles) sailed from Woolwich on 14 March 1607–1608. This expedition would be lost.
|Year||Vessels||Total Invested £||Bullion sent £||Goods sent £||Ships & Provisions £||Notes|
Initially, the company struggled in the spice trade because of the competition from the already well-established Dutch East India Company. The company opened a factory in Bantam on the first voyage, and imports of pepper from Java were an important part of the company's trade for twenty years. The factory in Bantam was closed in 1683. During this time ships belonging to the company arriving in India docked at Surat, which was established as a trade transit point in 1608.
In the next two years, the company established its first factory in south India in the town of Machilipatnam on the Coromandel Coast of the Bay of Bengal. The high profits reported by the company after landing in India initially prompted James I to grant subsidiary licences to other trading companies in England. But in 1609 he renewed the charter given to the company for an indefinite period, including a clause that specified that the charter would cease to be in force if the trade turned unprofitable for three consecutive years.
English traders frequently engaged in hostilities with their Dutch and Portuguese counterparts in the Indian Ocean. The company achieved a major victory over the Portuguese in the Battle of Swally in 1612, at Suvali in Surat. The company decided to explore the feasibility of gaining a territorial foothold in mainland India, with official sanction from both Britain and the Mughal Empire, and requested that the Crown launch a diplomatic mission.
In 1612, James I instructed Sir Thomas Roe to visit the Mughal Emperor Nur-ud-din Salim Jahangir (r. 1605–1627) to arrange for a commercial treaty that would give the company exclusive rights to reside and establish factories in Surat and other areas. In return, the company offered to provide the Emperor with goods and rarities from the European market. This mission was highly successful, and Jahangir sent a letter to James through Sir Thomas Roe:
Upon which assurance of your royal love I have given my general command to all the kingdoms and ports of my dominions to receive all the merchants of the English nation as the subjects of my friend; that in what place soever they choose to live, they may have free liberty without any restraint; and at what port soever they shall arrive, that neither Portugal nor any other shall dare to molest their quiet; and in what city soever they shall have residence, I have commanded all my governors and captains to give them freedom answerable to their own desires; to sell, buy, and to transport into their country at their pleasure. For confirmation of our love and friendship, I desire your Majesty to command your merchants to bring in their ships of all sorts of rarities and rich goods fit for my palace; and that you be pleased to send me your royal letters by every opportunity, that I may rejoice in your health and prosperous affairs; that our friendship may be interchanged and eternal.— Nuruddin Salim Jahangir, Letter to James I.
The company, which benefited from the imperial patronage, soon expanded its commercial trading operations. It eclipsed the Portuguese Estado da Índia, which had established bases in Goa, Chittagong, and Bombay, which Portugal later ceded to England as part of the dowry of Catherine of Braganza on her marriage to King Charles II. The East India Company also launched a joint attack with the Dutch United East India Company (VOC) on Portuguese and Spanish ships off the coast of China, which helped secure EIC ports in China. The company established trading posts in Surat (1619), Madras (1639), Bombay (1668), and Calcutta (1690). By 1647, the company had 23 factories, each under the command of a factor or master merchant and governor, and 90 employees in India. The major factories became the walled forts of Fort William in Bengal, Fort St George in Madras, and Bombay Castle.
In 1634, the Mughal emperor extended his hospitality to the English traders to the region of Bengal, and in 1717 completely waived customs duties for their trade. The company's mainstay businesses were by then cotton, silk, indigo dye, saltpetre, and tea. The Dutch were aggressive competitors and had meanwhile expanded their monopoly of the spice trade in the Straits of Malacca by ousting the Portuguese in 1640–1641. With reduced Portuguese and Spanish influence in the region, the EIC and VOC entered a period of intense competition, resulting in the Anglo-Dutch Wars of the 17th and 18th centuries.
Within the first two decades of the 17th century, the Dutch East India Company or Vereenigde Oostindische Compagnie, (VOC) was the wealthiest commercial operation in the world with 50,000 employees worldwide and a private fleet of 200 ships. It specialised in the spice trade and gave its shareholders 40% annual dividend.
The British East India Company was fiercely competitive with the Dutch and French throughout the 17th and 18th centuries over spices from the Spice Islands. Spices, at the time, could only be found on these islands, such as pepper, ginger, nutmeg, cloves and cinnamon could bring profits as high as 400 percent from one voyage.
The tension was so high between the Dutch and the British East Indies Trading Companies that it escalated into at least four Anglo-Dutch Wars between them: 1652–1654, 1665–1667, 1672–1674 and 1780–1784.
The Dutch Company maintained that profit must support the cost of war which came from trade which produced profit.
Competition arose in 1635 when Charles I granted a trading licence to Sir William Courteen, which permitted the rival Courteen association to trade with the east at any location in which the EIC had no presence.
In an act aimed at strengthening the power of the EIC, King Charles II granted the EIC (in a series of five acts around 1670) the rights to autonomous territorial acquisitions, to mint money, to command fortresses and troops and form alliances, to make war and peace, and to exercise both civil and criminal jurisdiction over the acquired areas.
In 1689 a Mughal fleet commanded by Sidi Yaqub attacked Bombay. After a year of resistance the EIC surrendered in 1690, and the company sent envoys to Aurangzeb's camp to plead for a pardon. The company's envoys had to prostrate themselves before the emperor, pay a large indemnity, and promise better behaviour in the future. The emperor withdrew his troops, and the company subsequently re-established itself in Bombay and set up a new base in Calcutta.
|Bengal||Madras||Bombay||Surat||EIC (total)||VOC (total)|
Eventually, the East India Company seized control of Bengal and slowly the whole Indian subcontinent with its private armies, composed primarily of Indian sepoys. As historian William Dalrymple observes,
We still talk about the British conquering India, but that phrase disguises a more sinister reality. It was not the British government that seized India at the end of the 18th century, but a dangerously unregulated private company headquartered in one small office, five windows wide, in London, and managed in India by an unstable sociopath – [Robert] Clive.
In 1613, during the rule of Tokugawa Hidetada of the Tokugawa shogunate, the British ship Clove, under the command of Captain John Saris, was the first British ship to call on Japan. Saris was the chief factor of the EIC's trading post in Java, and with the assistance of William Adams, a British sailor who had arrived in Japan in 1600, he was able to gain permission from the ruler to establish a commercial house in Hirado on the Japanese island of Kyushu:
We give free license to the subjects of the King of Great Britaine, Sir Thomas Smythe, Governor and Company of the East Indian Merchants and Adventurers forever safely come into any of our ports of our Empire of Japan with their shippes and merchandise, without any hindrance to them or their goods, and to abide, buy, sell and barter according to their own manner with all nations, to tarry here as long as they think good, and to depart at their pleasure.
In September 1695, Captain Henry Every, an English pirate on board the Fancy, reached the Straits of Bab-el-Mandeb, where he teamed up with five other pirate captains to make an attack on the Indian fleet on return from the annual pilgrimage to Mecca. The Mughal convoy included the treasure-laden Ganj-i-Sawai, reported to be the greatest in the Mughal fleet and the largest ship operational in the Indian Ocean, and its escort, the Fateh Muhammed. They were spotted passing the straits en route to Surat. The pirates gave chase and caught up with Fateh Muhammed some days later, and meeting little resistance, took some £50,000 to £60,000 worth of treasure.
Every continued in pursuit and managed to overhaul Ganj-i-Sawai, which resisted strongly before eventually striking. Ganj-i-Sawai carried enormous wealth and, according to contemporary East India Company sources, was carrying a relative of the Grand Mughal, though there is no evidence to suggest that it was his daughter and her retinue. The loot from the Ganj-i-Sawai had a total value between £325,000 and £600,000, including 500,000 gold and silver pieces, and has become known as the richest ship ever taken by pirates.
In a letter sent to the Privy Council by Sir John Gayer, then governor of Bombay and head of the East India Company, Gayer claims that "it is certain the Pirates ... did do very barbarously by the People of the Ganj-i-Sawai and Abdul Ghaffar's ship, to make them confess where their money was." The pirates set free the survivors who were left aboard their emptied ships, to continue their voyage back to India.
When the news arrived in England it caused an outcry. To appease Aurangzeb, the East India Company promised to pay all financial reparations, while Parliament declared the pirates hostis humani generis ("enemies of the human race"). In mid-1696 the government issued a £500 bounty on Every's head and offered a free pardon to any informer who disclosed his whereabouts. When the East India Company later doubled that reward, the first worldwide manhunt in recorded history was underway.
The plunder of Aurangzeb's treasure ship had serious consequences for the English East India Company. The furious Mughal Emperor Aurangzeb ordered Sidi Yaqub and Nawab Daud Khan to attack and close four of the company's factories in India and imprison their officers, who were almost lynched by a mob of angry Mughals, blaming them for their countryman's depredations, and threatened to put an end to all English trading in India. To appease Emperor Aurangzeb and particularly his Grand Vizier Asad Khan, Parliament exempted Every from all of the Acts of Grace (pardons) and amnesties it would subsequently issue to other pirates.
The prosperity that the officers of the company enjoyed allowed them to return to Britain and establish sprawling estates and businesses, and to obtain political power. The company developed a lobby in the English parliament. Under pressure from ambitious tradesmen and former associates of the company (pejoratively termed Interlopers by the company), who wanted to establish private trading firms in India, a deregulating act was passed in 1694.
This allowed any English firm to trade with India, unless specifically prohibited by act of parliament, thereby annulling the charter that had been in force for almost 100 years. By an act that was passed in 1698, a new "parallel" East India Company (officially titled the English Company Trading to the East Indies) was floated under a state-backed indemnity of £2 million. The powerful stockholders of the old company quickly subscribed a sum of £315,000 in the new concern, and dominated the new body. The two companies wrestled with each other for some time, both in England and in India, for a dominant share of the trade.
It quickly became evident that, in practice, the original company faced scarcely any measurable competition. The companies merged in 1708, by a tripartite indenture involving both companies and the state, with the charter and agreement for the new United Company of Merchants of England Trading to the East Indies being awarded by the Sidney Godolphin, 1st Earl of Godolphin. Under this arrangement, the merged company lent to the Treasury a sum of £3,200,000, in return for exclusive privileges for the next three years, after which the situation was to be reviewed. The amalgamated company became the United Company of Merchants of England Trading to the East Indies.
In the following decades there was a constant battle between the company lobby and the Parliament. The company sought a permanent establishment, while the Parliament would not willingly allow it greater autonomy and so relinquish the opportunity to exploit the company's profits. In 1712, another act renewed the status of the company, though the debts were repaid. By 1720, 15% of British imports were from India, almost all passing through the company, which reasserted the influence of the company lobby. The licence was prolonged until 1766 by yet another act in 1730.
At this time, Britain and France became bitter rivals. Frequent skirmishes between them took place for control of colonial possessions. In 1742, fearing the monetary consequences of a war, the British government agreed to extend the deadline for the licensed exclusive trade by the company in India until 1783, in return for a further loan of £1 million. Between 1756 and 1763, the Seven Years' War diverted the state's attention towards consolidation and defence of its territorial possessions in Europe and its colonies in North America.
The war took place on Indian soil, between the company troops and the French forces. In 1757, the Law Officers of the Crown delivered the Pratt–Yorke opinion distinguishing overseas territories acquired by right of conquest from those acquired by private treaty. The opinion asserted that, while the Crown of Great Britain enjoyed sovereignty over both, only the property of the former was vested in the Crown.
With the advent of the Industrial Revolution, Britain surged ahead of its European rivals. Demand for Indian commodities was boosted by the need to sustain the troops and the economy during the war, and by the increased availability of raw materials and efficient methods of production. As home to the revolution, Britain experienced higher standards of living. Its spiralling cycle of prosperity, demand and production had a profound influence on overseas trade. The company became the single largest player in the British global market. In 1801 Henry Dundas reported to the House of Commons that
... on the 1st March, 1801, the debts of the East India Company amounted to 5,393,989l. their effects to 15,404,736l. and that their sales had increased since February 1793, from 4,988,300l. to 7,602,041l.
Sir John Banks, a businessman from Kent who negotiated an agreement between the king and the company, began his career in a syndicate arranging contracts for victualling the navy, an interest he kept up for most of his life. He knew that Samuel Pepys and John Evelyn had amassed a substantial fortune from the Levant and Indian trades.
He became a director and later, as governor of the East India Company in 1672, he arranged a contract which included a loan of £20,000 and £30,000 worth of saltpetre—also known as potassium nitrate, a primary ingredient in gunpowder—for the King "at the price it shall sell by the candle"—that is by auction—where bidding could continue as long as an inch-long candle remained alight.
Outstanding debts were also agreed and the company permitted to export 250 tons of saltpetre. Again in 1673, Banks successfully negotiated another contract for 700 tons of saltpetre at £37,000 between the king and the company. So high was the demand from armed forces that the authorities sometimes turned a blind eye on the untaxed sales. One governor of the company was even reported as saying in 1864 that he would rather have the saltpetre made than the tax on salt.
The Seven Years' War (1756–1763) resulted in the defeat of the French forces, limited French imperial ambitions, and stunted the influence of the Industrial Revolution in French territories. Robert Clive, the governor-general, led the company to a victory against Joseph François Dupleix, the commander of the French forces in India, and recaptured Fort St George from the French. The company took this respite to seize Manila in 1762.
By the Treaty of Paris, France regained the five establishments captured by the British during the war (Pondichéry, Mahe, Karikal, Yanam and Chandernagar) but was prevented from erecting fortifications and keeping troops in Bengal (art. XI). Elsewhere in India, the French were to remain a military threat, particularly during the War of American Independence, and up to the capture of Pondichéry in 1793 at the outset of the French Revolutionary Wars without any military presence. Although these small outposts remained French possessions for the next two hundred years, French ambitions on Indian territories were effectively laid to rest, thus eliminating a major source of economic competition for the company.
The East India Company had also been granted competitive advantages over colonial American tea importers to sell tea from its colonies in Asia in American colonies. This led to the Boston Tea Party in which protesters boarded British ships and threw the tea overboard. When protesters successfully prevented the unloading of tea in three other colonies and in Boston, Governor Thomas Hutchinson of the Province of Massachusetts Bay refused to allow the tea to be returned to Britain. This was one of the incidents which led to the American revolution and independence of the American colonies.
In its first century and half, the EIC used a few hundred soldiers as guards. The great expansion came after 1750, when it had 3,000 regular troops. By 1763, it had 26,000; by 1778, it had 67,000. It recruited largely Indian troops and trained them along European lines. The military arm of the East India Company quickly developed into a private corporate armed force used as an instrument of geo-political power and expansion instead of its original purpose as a guard force. Because of this, the EIC became the most powerful military force in the Indian subcontinent. As it increased in size, the army was divided into the Presidency Armies of Bengal, Madras and Bombay, each of which recruited its own infantry, cavalry, and artillery units. The navy also grew significantly, vastly expanding its fleet. Although heavily armed merchant vessels, called East Indiamen, composed most of the fleet, it also included warships.
The company, fresh from a colossal victory, and with the backing of its own private well-disciplined and experienced army, was able to assert its interests in the Carnatic region from its base at Madras and in Bengal from Calcutta, without facing any further obstacles from other colonial powers.
It continued to experience resistance from local rulers during its expansion. Robert Clive led company forces against Siraj Ud Daulah, the last independent Nawab of Bengal, Bihar, and Midnapore district in Odisha to victory at the Battle of Plassey in 1757, resulting in the conquest of Bengal. This victory estranged the British and the Mughals, since Siraj Ud Daulah was a Mughal feudatory ally. That led to the Battle of Buxar.
With the gradual weakening of the Marathas in the aftermath of the three Anglo-Maratha wars, the British also secured the Ganges-Jumna Doab, the Delhi-Agra region, parts of Bundelkhand, Broach, some districts of Gujarat, the fort of Ahmmadnagar, province of Cuttack (which included Mughalbandi/the coastal part of Odisha, Garjat/the princely states of Odisha, Balasore Port, parts of Midnapore district of West Bengal), Bombay (Mumbai) and the surrounding areas, leading to a formal end of the Maratha empire and firm establishment of the British East India Company in India.
Hyder Ali and Tipu Sultan, the rulers of the Kingdom of Mysore, offered much resistance to the British forces. Having sided with the French during the Revolutionary War, the rulers of Mysore continued their struggle against the company with the four Anglo-Mysore Wars. Mysore finally fell to the company forces in 1799, in the fourth Anglo-Mysore war during which Tipu Sultan was killed.
The last vestiges of local administration were restricted to the northern regions of Delhi, Oudh, Rajputana, and Punjab, where the company's presence was ever increasing amidst infighting and offers of protection among the remaining princes. The hundred years from the Battle of Plassey in 1757 to the Indian Rebellion of 1857 were a period of consolidation for the company, during which it seized control of the entire Indian subcontinent and functioned more as an administrator and less as a trading concern.
A cholera pandemic began in Bengal, then spread across India by 1820. 10,000 British troops and countless Indians died during this pandemic. Between 1760 and 1834 only some 10% of the East India Company's officers survived to take the final voyage home.
In the early 19th century the Indian question of geopolitical dominance and empire holding remained with the East India Company.[Note 1] The three independent armies of the company's Presidencies, with some locally raised irregular forces, expanded to a total of 280,000 men by 1857. The troops were first recruited from mercenaries and low-caste volunteers, but in time the Bengal Army in particular was composed largely of high-caste Hindus and landowning Muslims.
Within the Army British officers, who initially trained at the company's own academy at the Addiscombe Military Seminary, always outranked Indians, no matter how long the Indians' service. The highest rank to which an Indian soldier could aspire was Subadar-Major (or Rissaldar-Major in cavalry units), effectively a senior subaltern equivalent. Promotion for both British and Indian soldiers was strictly by seniority, so Indian soldiers rarely reached the commissioned ranks of Jamadar or Subadar before they were middle aged at best. They received no training in administration or leadership to make them independent of their British officers.
During the wars against the French and their allies in the late eighteenth and early nineteenth centuries, the East India Company's armies were used to seize the colonial possessions of other European nations, including the islands of Réunion and Mauritius.
There was a systemic disrespect in the company for the spreading of Protestantism, although it fostered respect for Hindu and Muslim, castes, and ethnic groups. The growth of tensions between the EIC and the local religious and cultural groups grew in the 19th century as the Protestant revival grew in Great Britain. These tensions erupted at the Indian Rebellion of 1857 and the company ceased to exist when the company dissolved through the East India Stock Dividend Redemption Act 1873.
In the 18th century, Britain had a huge trade deficit with Qing dynasty China and so, in 1773, the company created a British monopoly on opium buying in Bengal, India, by prohibiting the licensing of opium farmers and private cultivation. The monopoly system established in 1799 continued with minimal changes until 1947. As the opium trade was illegal in China, Company ships could not carry opium to China. So the opium produced in Bengal was sold in Calcutta on condition that it be sent to China.
Despite the Chinese ban on opium imports, reaffirmed in 1799 by the Jiaqing Emperor, the drug was smuggled into China from Bengal by traffickers and agency houses such as Jardine, Matheson & Co and Dent & Co. in amounts averaging 900 tons a year. The proceeds of the drug-smugglers landing their cargoes at Lintin Island were paid into the company's factory at Canton and by 1825, most of the money needed to buy tea in China was raised by the illegal opium trade.
The company established a group of trading settlements centred on the Straits of Malacca called the Straits Settlements in 1826 to protect its trade route to China and to combat local piracy. The settlements were also used as penal settlements for Indian civilian and military prisoners.
In 1838 with the amount of smuggled opium entering China approaching 1,400 tons a year, the Chinese imposed a death penalty for opium smuggling and sent a Special Imperial Commissioner, Lin Zexu, to curb smuggling. This resulted in the First Opium War (1839–42). After the war Hong Kong island was ceded to Britain under the Treaty of Nanking and the Chinese market opened to the opium traders of Britain and other nations. The Jardines and Apcar and Company dominated the trade, although P&O also tried to take a share. A Second Opium War fought by Britain and France against China lasted from 1856 until 1860 and led to the Treaty of Tientsin, which legalised the importation of opium. Legalisation stimulated domestic Chinese opium production and increased the importation of opium from Turkey and Persia. This increased competition for the Chinese market led to India's reducing its opium output and diversifying its exports.
The company employed many junior clerks, known as "writers", to record the details of accounting, managerial decisions, and activities related to the company, such as minutes of meetings, copies of Company orders and contracts, and filings of reports and copies of ship's logs. Several well-known British scholars and literary men had Company writerships, such as Henry Thomas Colebrooke in India and Charles Lamb in England. One Indian writer of some importance in the 19th century was Ram Mohan Roy, who learned English, Sanskrit, Persian, Arabic, Greek, and Latin.
Although the company was becoming increasingly bold and ambitious in putting down resisting states, it was becoming clearer that the company was incapable of governing the vast expanse of the captured territories. The Bengal famine of 1770, in which one-third of the local population died, caused distress in Britain. Military and administrative costs mounted beyond control in British-administered regions in Bengal because of the ensuing drop in labour productivity.
At the same time, there was commercial stagnation and trade depression throughout Europe. The directors of the company attempted to avert bankruptcy by appealing to Parliament for financial help. This led to the passing of the Tea Act in 1773, which gave the company greater autonomy in running its trade in the American colonies, and allowed it an exemption from tea import duties which its colonial competitors were required to pay.
When the American colonists and tea merchants were told of this Act, they boycotted the company tea. Although the price of tea had dropped because of the Act, it also validated the Townshend Acts, setting the precedent for the king to impose additional taxes in the future. The arrival of tax-exempt Company tea, undercutting the local merchants, triggered the Boston Tea Party in the Province of Massachusetts Bay, one of the major events leading up to the American Revolution.
By the Regulating Act of 1773 (later known as the East India Company Act 1773), the Parliament of Great Britain imposed a series of administrative and economic reforms; this clearly established Parliament's sovereignty and ultimate control over the company. The Act recognised the company's political functions and clearly established that the "acquisition of sovereignty by the subjects of the Crown is on behalf of the Crown and not in its own right".
Despite stiff resistance from the East India lobby in Parliament and from the company's shareholders, the Act passed. It introduced substantial governmental control and allowed British India to be formally under the control of the Crown, but leased back to the company at £40,000 for two years. Under the Act's most important provision, a governing Council composed of five members was created in Calcutta. The three members nominated by Parliament and representing the government's interest could, and invariably would, outvote the two Company members. The Council was headed by Warren Hastings, the incumbent governor, who became the first governor-general of Bengal, with an ill-defined authority over the Bombay and Madras Presidencies. His nomination, made by the Court of Directors, would in future be subject to the approval of a Council of Four appointed by the Crown. Initially, the Council consisted of Lieutenant General Sir John Clavering, Sir George Monson, Sir Richard Barwell, and Sir Philip Francis.
Hastings was entrusted with the power of war and peace. British judges and magistrates would also be sent to India to administer the legal system. The governor-general and the council would have complete legislative powers. The company was allowed to maintain its virtual monopoly over trade in exchange for the biennial sum and was obligated to export a minimum quantity of goods yearly to Britain. The costs of administration were to be met by the company. The company initially welcomed these provisions, but the annual burden of the payment contributed to the steady decline of its finances.
The East India Company Act 1784 (Pitt's India Act) had two key aspects:
Pitt's Act was deemed a failure because it quickly became apparent that the boundaries between government control and the company's powers were nebulous and highly subjective. The government felt obliged to respond to humanitarian calls for better treatment of local peoples in British-occupied territories. Edmund Burke, a former East India Company shareholder and diplomat, was moved to address the situation and introduced a new Regulating Bill in 1783. The bill was defeated amid lobbying by company loyalists and accusations of nepotism in the bill's recommendations for the appointment of councillors.
The Act of 1786 (26 Geo. 3 c. 16) enacted the demand of Earl Cornwallis that the powers of the governor-general be enlarged to empower him, in special cases, to override the majority of his Council and act on his own special responsibility. The Act enabled the offices of the governor-general and the commander-in-chief to be jointly held by the same official.
This Act clearly demarcated borders between the Crown and the company. After this point, the company functioned as a regularised subsidiary of the Crown, with greater accountability for its actions and reached a stable stage of expansion and consolidation. Having temporarily achieved a state of truce with the Crown, the company continued to expand its influence to nearby territories through threats and coercive actions. By the middle of the 19th century, the company's rule extended across most of India, Burma, Malaya, Singapore, and Hong Kong, and a fifth of the world's population was under its trading influence. In addition, Penang Island, ceded from the Kedah Sultanate in Malaya, became the fourth most important settlement, a presidency, of the company's Indian territories.
The company's charter was renewed for a further 20 years by the Charter Act of 1793. In contrast with the legislative proposals of the previous two decades, the 1793 Act was not a particularly controversial measure, and made only minimal changes to the system of government in India and to British oversight of the company's activities. Sale of liquor was forbidden without licence. It was pointed that the payment of the staff of the board of council should not be made from the Indian revenue.
The aggressive policies of Lord Wellesley and the Marquess of Hastings led to the company's gaining control of all India (except for the Punjab and Sindh), and some part of the then kingdom of Nepal under the Sugauli Treaty. The Indian princes had become vassals of the company. But the expense of wars leading to the total control of India strained the company's finances. The company was forced to petition Parliament for assistance. This was the background to the Charter Act of 1813 which, among other things:
The Industrial Revolution in Britain, the consequent search for markets, and the rise of laissez-faire economic ideology form the background to the Government of India Act 1833 (3 & 4 Will. 4 c. 85). The Act:
British influence continued to expand; in 1845, Great Britain purchased the Danish colony of Tranquebar. The company had at various stages extended its influence to China, the Philippines, and Java. It had solved its critical lack of cash needed to buy tea by exporting Indian-grown opium to China. China's efforts to end the trade led to the First Opium War (1839–1842).
The English Education Act by the Council of India in 1835 reallocated funds from the East India Company to spend on education and literature in India.
This Act (16 & 17 Vict. c. 95) provided that British India would remain under the administration of the company in trust for the Crown until Parliament should decide otherwise. It also introduced a system of open competition as the basis of recruitment for civil servants of the company and thus deprived the directors of their patronage system.
Under the act, for the first time the legislative and executive powers of the governor-general's council were separated. It also added six additional members to the governor-general's executive committee.
The Indian Rebellion of 1857 (also known as the Indian Mutiny or Sepoy Mutiny) resulted in widespread devastation in India: many condemned the East India Company for permitting the events to occur. In the aftermath of the Rebellion, under the provisions of the Government of India Act 1858, the British Government nationalised the company. The Crown took over its Indian possessions, its administrative powers and machinery, and its armed forces.
The company remained in existence in vestigial form, continuing to manage the tea trade on behalf of the British Government (and the supply of Saint Helena) until the East India Stock Dividend Redemption Act 1873 came into effect, on 1 January 1874. This Act provided for the formal dissolution of the company on 1 June 1874, after a final dividend payment and the commutation or redemption of its stock. The Times commented on 8 April 1873:
It accomplished a work such as in the whole history of the human race no other trading Company ever attempted, and such as none, surely, is likely to attempt in the years to come.
In the 1980s, a group of investors purchased the rights to the moribund corporate brand and founded a clothing company, which lasted until the 1990s. The corporate vestiges were again purchased by another group of investors who opened their first store in 2010.
The company's headquarters in London, from which much of India was governed, was East India House in Leadenhall Street. After occupying premises in Philpot Lane from 1600 to 1621; in Crosby House, Bishopsgate, from 1621 to 1638; and in Leadenhall Street from 1638 to 1648, the company moved into Craven House, an Elizabethan mansion in Leadenhall Street. The building had become known as East India House by 1661. It was completely rebuilt and enlarged in 1726–1729; and further significantly remodelled and expanded in 1796–1800. It was finally vacated in 1860 and demolished in 1861–1862. The site is now occupied by the Lloyd's building.
In 1607, the company decided to build its own ships and leased a yard on the River Thames at Deptford. By 1614, the yard having become too small, an alternative site was acquired at Blackwall: the new yard was fully operational by 1617. It was sold in 1656, although for some years East India Company ships continued to be built and repaired there under the new owners.
In 1803, an Act of Parliament, promoted by the East India Company, established the East India Dock Company, with the aim of establishing a new set of docks (the East India Docks) primarily for the use of ships trading with India. The existing Brunswick Dock, part of the Blackwall Yard site, became the Export Dock; while a new Import Dock was built to the north. In 1838 the East India Dock Company merged with the West India Dock Company. The docks were taken over by the Port of London Authority in 1909, and closed in 1967.
The East India College was founded in 1806 as a training establishment for "writers" (i.e. clerks) in the company's service. It was initially located in Hertford Castle, but moved in 1809 to purpose-built premises at Hertford Heath, Hertfordshire. In 1858 the college closed; but in 1862 the buildings reopened as a public school, now Haileybury and Imperial Service College.
The East India Company Military Seminary was founded in 1809 at Addiscombe, near Croydon, Surrey, to train young officers for service in the company's armies in India. It was based in Addiscombe Place, an early 18th-century mansion. The government took it over in 1858, and renamed it the Royal Indian Military College. In 1861 it was closed, and the site was subsequently redeveloped.
In 1818, the company entered into an agreement by which those of its servants who were certified insane in India might be cared for at Pembroke House, Hackney, London, a private lunatic asylum run by Dr George Rees until 1838, and thereafter by Dr William Williams. The arrangement outlasted the company itself, continuing until 1870, when the India Office opened its own asylum, the Royal India Asylum, at Hanwell, Middlesex.
The East India Club in London was formed in 1849 for officers of the company. The Club still exists today as a private gentlemen's club with its club house situated at 16 St. James's Square, London.
The East India Company was one of the most powerful and enduring organisations in history and had a long lasting impact on the Indian Subcontinent, with both positive and harmful effects. Although dissolved by the East India Stock Dividend Redemption Act 1873 following the rebellion of 1857, it stimulated the growth of the British Empire. Its armies were to become the armies of British India after 1857, and it played a key role in introducing English as an official language in India. This also led to Macaulayism in the Indian subcontinent.
Once the East India Company took over Bengal in the treaty of Allahabad (1765) it collected taxes which it used to further its expansion to the rest of India and did not have to rely on venture capital from London. It returned a high profit to those who risked original money for earlier ventures into Bengal.
During the first century of the East India Company's expansion in India, most people in India lived under regional kings or Nawabs. By the late 18th century many Moghuls were weak in comparison to the rapidly expanding Company as it took over cities and land, built railways, roads and bridges. The first railway of 21 mile (33.8 km), known as the Great Indian Peninsula Railway ran between Bombay (Mumbai) and Tannah (Thane) in 1849. The Company sought quick profits because the financial backers in England took high risks: their money for possible profits or losses through shipwrecks, wars or calamities.
The increasingly large territory the Company was annexing and collecting taxes was also run by the local Nawabs. In essence, it was a dual administration. Between 1765 and 1772 Robert Clive gave the responsibility of tax collecting, diwani, to the Indian deputy and judicial and police responsibilities to other Indian deputies. The Company concentrated its new power of collecting revenue and left the responsibilities to the Indian agencies. The East India Company took the beginning steps of British takeover of power in India for centuries to come. In 1772 the Company made Warren Hastings, who had been in India with the Company since 1750, its first governor-general to manage and overview all of the annexed lands. The dual administration system came to an end.
Hastings learned Urdu and Persian and took great interest in preserving ancient Sanskrit manuscripts and having them translated into English. He employed many Indians as officials.
Hastings used Sanskrit texts for Hindus and Arabic texts for Muslims. This is still used in Indian, Pakistani and Bangladeshi courts today in civil law. Hastings also annexed lands and kingdoms and enriched himself in the process. His enemies in London used this against him to have him impeached. See (Impeachment of Warren Hastings)
Charles Cornwallis, widely remembered as having surrendered to George Washington in 1781, replaced Hastings. Cornwallis distrusted Indians and replaced Indians with English. He introduced a system of personal land ownership for Indians. This change caused much conflict since most illiterate people had no idea why they suddenly became land renters from land owners.
Mughals often had to choose to fight against the Company and lose everything or cooperate with the Company and receive a big pension but lose the throne. The British East India Company gradually took over most of India by threat, intimidation, bribery or outright war.
Widespread corruption and looting of Bengal resources and treasures during its rule resulted in poverty. Famines, such as the Great Bengal famine of 1770 and subsequent famines during the 18th and 19th centuries, became more widespread, chiefly because of exploitative agriculture promulgated by the policies of the East India company and the forced cultivation of opium in place of grain.
The historian William Dalrymple has called Robert Clive an "unstable sociopath" due to these harmful policies and actions that resulted in famines and atrocities towards local native Indians and peasants. Changes caused by Clive to the revenue system and existing agricultural practices to maximize profits for the company led to the Bengal Famine of 1770.
The English East India Company flag changed over time, with a canton based on the flag of the contemporary Kingdom, and a field of 9-to-13 alternating red and white stripes.
From 1600, the canton consisted of a St George's Cross representing the Kingdom of England. With the Acts of Union 1707, the canton was changed to the new Union Flag—consisting of an English St George's Cross combined with a Scottish St Andrew's cross—representing the Kingdom of Great Britain. After the Acts of Union 1800 that joined Ireland with Great Britain to form the United Kingdom of Great Britain and Ireland, the canton of the East India Company flag was altered accordingly to include a Saint Patrick's Saltire.
There has been much debate about the number and order of stripes in the field of the flag. Historical documents and paintings show variations from 9-to-13 stripes, with some images showing the top stripe red and others showing it white.
At the time of the American Revolution the East India Company flag was nearly identical to the Grand Union Flag. Historian Charles Fawcett argued that the East India Company Flag inspired the Stars and Stripes.
The East India Company's original coat of arms was granted in 1600. The blazon of the arms is as follows:
"Azure, three ships with three masts, rigged and under full sail, the sails, pennants and ensigns Argent, each charged with a cross Gules; on a chief of the second a pale quarterly Azure and Gules, on the 1st and 4th a fleur-de-lis or, on the 2nd and 3rd a leopard or, between two roses Gules seeded Or barbed Vert." The shield had as a crest: "A sphere without a frame, bounded with the Zodiac in bend Or, between two pennants flottant Argent, each charged with a cross Gules, over the sphere the words Deus indicat" (Latin: God Indicates). The supporters were two sea lions (lions with fishes' tails) and the motto was Deo ducente nil nocet (Latin: Where God Leads, Nothing Harms).
The East India Company's arms, granted in 1698, were: "Argent a cross Gules; in the dexter chief quarter an escutcheon of the arms of France and England quarterly, the shield ornamentally and regally crowned Or." The crest was: "A lion rampant guardant Or holding between the forepaws a regal crown proper." The supporters were: "Two lions rampant guardant Or, each supporting a banner erect Argent, charged with a cross Gules." The motto was Auspicio regis et senatus angliæ (Latin: Under the auspices of the King and the Senate of England).
When the East India Company was chartered in 1600, it was still customary for individual merchants or members of companies such as the Company of Merchant Adventurers to have a distinguishing merchant's mark which often included the mystical "Sign of Four" and served as a trademark. The East India Company's merchant mark consisted of a "Sign of Four" atop a heart within which was a saltire between the lower arms of which were the initials "EIC". This mark was a central motif of the East India Company's coinage and forms the central emblem displayed on the Scinde Dawk postage stamps.
During the French Revolutionary and Napoleonic Wars, the East India Company arranged for letters of marque for its vessels such as the Lord Nelson. This was not so that they could carry cannon to fend off warships, privateers, and pirates on their voyages to India and China (that they could do without permission) but so that, should they have the opportunity to take a prize, they could do so without being guilty of piracy. Similarly, the Earl of Mornington, an East India Company packet ship of only six guns, also sailed under a letter of marque.
In addition, the company had its own navy, the Bombay Marine, equipped with warships such as Grappler. These vessels often accompanied vessels of the Royal Navy on expeditions, such as the Invasion of Java.
At the Battle of Pulo Aura, which was probably the company's most notable naval victory, Nathaniel Dance, Commodore of a convoy of Indiamen and sailing aboard the Warley, led several Indiamen in a skirmish with a French squadron, driving them off. Some six years earlier, on 28 January 1797, five Indiamen, the Woodford, under Captain Charles Lennox, the Taunton-Castle, Captain Edward Studd, Canton, Captain Abel Vyvyan, Boddam, Captain George Palmer, and Ocean, Captain John Christian Lochner, had encountered Admiral de Sercey and his squadron of frigates. On this occasion the Indiamen also succeeded in bluffing their way to safety, and without any shots even being fired. Lastly, on 15 June 1795, the General Goddard played a large role in the capture of seven Dutch East Indiamen off St Helena.
East Indiamen were large and strongly built and when the Royal Navy was desperate for vessels to escort merchant convoys it bought several of them to convert to warships. Earl of Mornington became HMS Drake. Other examples include:
Their design as merchant vessels meant that their performance in the warship role was underwhelming and the Navy converted them to transports.
Unlike all other British Government records, the records from the East India Company (and its successor the India Office) are not in The National Archives at Kew, London, but are held by the British Library in London as part of the Asia, Pacific and Africa Collections. The catalogue is searchable online in the Access to Archives catalogues. Many of the East India Company records are freely available online under an agreement that the Families in British India Society has with the British Library. Published catalogues exist of East India Company ships' journals and logs, 1600–1834; and of some of the company's daughter institutions, including the East India Company College, Haileybury, and Addiscombe Military Seminary.
The Asiatic Journal and Monthly Register for British India and its Dependencies, first issued in 1816, was sponsored by the East India Company, and includes much information relating to the EIC.
The Anglo–Maratha Wars were three wars fought in the Indian sub-continent between Maratha Empire and the British East India Company:
First Anglo-Maratha War (1775–1782)
Second Anglo-Maratha War (1803–1805)
Third Anglo-Maratha War, also known as the Pindari War (1816–1818)Anglo-Mysore Wars
The Anglo–Mysore Wars were a series of wars fought in over the last three decades of the 18th century between the Kingdom of Mysore on the one hand, and the British East India Company (represented chiefly by the Madras Presidency), and Maratha Confederacy and the Nizam of Hyderabad on the other. Hyder Ali and his successor Tipu Sultan fought a war on four fronts with the British attacking from the west, south and east, while the Marathas and the Nizam's forces attacked from the north. The fourth war resulted in the overthrow of the house of Hyder Ali and Tipu (who was killed in the final war, in 1799), and the dismantlement of Mysore to the benefit of the East India Company, which won and took control of much of India.Battle of Buxar
The Battle of Buxar was fought on 22 October 1764, during the Bengal War was between the forces under the command of the British East India Company, led by Hector Munro, and the combined armies of Mir Qasim, Nawab of Bengal till 1763; the Nawab of Awadh Shuja-ud-Daula; and the Mughal Emperor Shah Alam II. The battle was fought at Buxar, a "small fortified town" within the territory of Bihar, located on the banks of the Ganges river about 130 kilometres (81 mi) west of Patna; it was a decisive victory for the British East India Company. The war was brought to an end by the Treaty of Allahabad in 1765.Battle of Chingleput
The Battle of Chingleput was a short siege in early 1752, during the Second Carnatic War. About 700 British East India Company recruits and sepoys under the command of Robert Clive captured the fortress of Chingleput, near Madras, defended by a French East India Company garrison of about 40 Europeans and 500 troops.Bengal Army
The Bengal Army was the army of the Bengal Presidency, one of the three presidencies of British India within the British Empire.
The Presidency armies, like the presidencies themselves, belonged to the East India Company (EIC) until the Government of India Act 1858 (passed in the aftermath of the Indian Rebellion of 1857) transferred all three presidencies to the direct authority of the British Crown.
In 1895 all three presidency armies were merged into the Indian Army.Boston Tea Party
The Boston Tea Party was a political and mercantile protest by the Sons of Liberty in Boston, Massachusetts, on December 16, 1773. The target was the Tea Act of May 10, 1773, which allowed the British East India company to sell tea from China in American colonies without paying taxes apart from those imposed by the Townshend Acts. American Patriots strongly opposed the taxes in the Townshend Act as a violation of their rights. Demonstrators, some disguised as Native Americans, destroyed an entire shipment of tea sent by the East India Company.
They boarded the ships and threw the chests of tea into the Boston Harbor. The British government responded harshly and the episode escalated into the American Revolution. The Tea Party became an iconic event of American history, and since then other political protests such as the Tea Party movement have referred to themselves as historical successors to the Boston protest of 1773.
The Tea Party was the culmination of a resistance movement throughout British America against the Tea Act, which had been passed by the British Parliament in 1773. Colonists objected to the Tea Act because they believed that it violated their rights as Englishmen to "no taxation without representation", that is, to be taxed only by their own elected representatives and not by a British parliament in which they were not represented. In addition, the well-connected East India Company had been granted competitive advantages over colonial tea importers, who resented the move and feared additional infringement on their business. Protesters had successfully prevented the unloading of tea in three other colonies, but in Boston, embattled Royal Governor Thomas Hutchinson refused to allow the tea to be returned to Britain.The Boston Tea Party was a significant event in the growth of the American Revolution. Parliament responded in 1774 with the Intolerable Acts, or Coercive Acts, which, among other provisions, ended local self-government in Massachusetts and closed Boston's commerce. Colonists up and down the Thirteen Colonies in turn responded to the Intolerable Acts with additional acts of protest, and by convening the First Continental Congress, which petitioned the British monarch for repeal of the acts and coordinated colonial resistance to them. The crisis escalated, and the American Revolutionary War began near Boston in 1775.Carnatic Wars
The Carnatic Wars (also spelled Karnatic Wars) were a series of military conflicts in the middle of the 18th century in India. The conflicts involved numerous nominally independent rulers and their vassals, struggles for succession and territory, and included a diplomatic and military struggle between the French East India Company and the British East India Company. They were mainly fought on the territories in India which were dominated by the Nizam of Hyderabad up to the Godavari delta. As a result of these military contests, the British East India Company established its dominance among the European trading companies within India. The French company was pushed to a corner and was confined primarily to Pondichéry. The East India Company's dominance eventually led to control by the British Company over most of India and eventually to the establishment of the British Raj.
In the 18th century, the coastal Carnatic region was a dependency of Hyderabad. Three Carnatic Wars were fought between 1746 and 1763.Colonial India
Colonial India was the part of the Indian subcontinent which was under the jurisdiction of European colonial powers, during the Age of Discovery. European power was exerted both by conquest and trade, especially in spices.
The search for the wealth and prosperity of India led to the colonization of the Americas by Christopher Columbus in 1492. Only a few years later, near the end of the 15th century, Portuguese sailor Vasco da Gama became the first European to re-establish direct trade links with India since Roman times by being the first to arrive by circumnavigating Africa (c. 1497–1499). Having arrived in Calicut, which by then was one of the major trading ports of the eastern world, he obtained permission to trade in the city from Saamoothiri Rajah.
Trading rivalries among the seafaring European powers brought other European powers to India. The Dutch Republic, England, France, and Denmark-Norway all established trading posts in India in the early 17th century. As the Mughal Empire disintegrated in the early 18th century, and then as the Maratha Empire became weakened after the third battle of Panipat, many relatively weak and unstable Indian states which emerged were increasingly open to manipulation by the Europeans, through dependent Indian rulers.
In the later 18th century Great Britain and France struggled for dominance, partly through proxy Indian rulers but also by direct military intervention. The defeat of the redoubtable Indian ruler Tipu Sultan in 1799 marginalised the French influence. This was followed by a rapid expansion of British power through the greater part of the Indian subcontinent in the early 19th century. By the middle of the century the British had already gained direct or indirect control over almost all of India. British India, consisting of the directly-ruled British presidencies and provinces, contained the most populous and valuable parts of the British Empire and thus became known as "the jewel in the British crown".Company rule in India
Company rule in India (sometimes, Company Raj, "raj", lit. "rule" in Hindustani) refers to the rule or dominion of the British East India Company over parts of the Indian subcontinent. This is variously taken to have commenced in 1757, after the Battle of Plassey, when Mir Jafar, the new Nawab of Bengal enthroned by Robert Clive, became a puppet in the Company's hands; in 1765, when the Company was granted the diwani, or the right to collect revenue, in Bengal and Bihar; or in 1773, when the Company established a capital in Calcutta, appointed its first Governor-General, Warren Hastings, and became directly involved in governance. By 1818, with the defeat of the Marathas, followed by the pensioning of the Peshwa and the annexation of his territories, British supremacy in India was complete.The East India Company was a private company owned by stockholders and reporting to a board of directors in London. Originally formed as a monopoly on trade, it increasingly took on governmental powers with its own army and judiciary. It seldom turned a profit, as employees diverted funds into their own pockets. The British government had little control, and there was increasing anger at the corruption and irresponsibility of Company officials or "nabobs" who made vast fortunes in a few years. Pitt's India Act of 1784 gave the British government effective control of the private company for the first time. The new policies were designed for an elite civil service career that minimized temptations for corruption. Increasingly Company officials lived in separate compounds according to British standards. The Company's rule lasted until 1858, when, after the Indian Rebellion of 1857, it was abolished. With the Government of India Act 1858, the British government assumed the task of directly administering India in the new British Raj.Doctrine of lapse
The doctrine of lapse was an annexation policy applied by the British East India Company in India until 1858.
According to the doctrine, any Indian princely state under the suzerainty of the British East India Company (the dominant imperial power in the subcontinent), as a vassal state under the British subsidiary system, would have its princely status abolished (and therefore annexed into British India) if the ruler was either "manifestly incompetent or died without a male heir". The latter supplanted the long-established right of an Indian sovereign without an heir to choose a successor. In addition, the British decided whether potential rulers were competent enough. The doctrine and its application were widely regarded by many Indians as illegitimate.
The policy is most commonly associated with Lord Dalhousie, who was the Governor General of the East India Company in India between 1848 and 1856. However, it was articulated by the Court of Directors of the East India Company as early as 1834 and several smaller states were already annexed under this doctrine before Dalhousie took over the post of Governor-General. Dalhousie used the policy most vigorously and extensively, though, so it is generally associated with him. The accession of Lord Dalhousie inaugurated a new chapter in the history of British India. He functioned as the Governor-General of India from 1848-1856.Dutch Bengal
Bengal was a directorate of the Dutch East India Company in Bengal between 1610 until the company's liquidation in 1800. It then became a colony of the Kingdom of the Netherlands until 1825, when it was relinquished to the British according to the Anglo-Dutch Treaty of 1824. Dutch presence in the region started by the establishment of a trading post at Pipili in the mouth of Subarnarekha river in Odisha. The former colony is part of what is today called Dutch India.Dutch Cape Colony
The Cape Colony (Dutch: Kaapkolonie) was a Dutch East India Company colony in Southern Africa, centered on the Cape of Good Hope, whence it derived its name. The original colony and its successive states that the colony was incorporated into occupied much of modern South Africa. Between 1652 and 1691 a Commandment, and between 1691 and 1795 a Governorate of the Dutch East India Company. Jan van Riebeeck established the colony as a re-supply and layover port for vessels of the Dutch East India Company trading with Asia. The Cape came under Dutch rule from 1652 to 1795 and again from 1803 to 1806. Much to the dismay of the shareholders of the Dutch East India Company, who focused primarily on making profits from the Asian trade, the colony rapidly expanded into a settler colony in the years after its founding.
As the only permanent settlement of the Dutch East India Company not serving as a trading post, it proved an ideal retirement place for employees of the company. After several years of service in the company, an employee could lease a piece of land in the colony as een Vryburgher ("a free citizen"), on which he had to cultivate crops that he had to sell to the Dutch East India Company for a fixed price. As these farms were labour-intensive, Vryburghers imported slaves from Madagascar, Mozambique and Asia, which rapidly increased the number of inhabitants. After King Louis XIV of France revoked the Edict of Nantes (October 1685), which had protected the right of Huguenots in France to practise Protestant worship without persecution from the state, the colony attracted many Huguenot settlers, who eventually mixed with the general Vryburgher population.
Due to the authoritarian rule of the Company (telling farmers what to grow for what price, controlling immigration, and monopolising trade), some farmers tried to escape the rule of the company by moving further inland. The Company, in an effort to control these migrants, established a magistracy at Swellendam in 1745 and another at Graaff Reinet in 1786, and declared the Gamtoos River as the eastern frontier of the colony, only to see the Trekboere cross it soon afterwards. In order to avoid collision with the Bantu peoples advancing south, north and west from east central Africa, the Dutch agreed in 1780 to make the Great Fish River the boundary of the colony.
In 1795, after the Battle of Muizenberg in present-day Cape Town, the British occupied the colony. Under the terms of the Peace of Amiens of 1802, Britain returned the colony to the Dutch on 1 March 1803, but as the Batavian Republic had since nationalized the Dutch East India Company (1796), the colony came under the direct rule of The Hague. Renewed Dutch control did not last long, however, as the outbreak of the Napoleonic Wars (18 May 1803) invalidated the Peace of Amiens. In January 1806, the British occupied the colony for a second time after the Battle of Blaauwberg at present-day Bloubergstrand. The Anglo-Dutch Treaty of 1814 confirmed the transfer of sovereignty to Great Britain. However most of the Dutch settlers remained in the colony under new leadership of the British.Dutch East India Company
The Dutch East India Company (Dutch: Vereenigde Oostindische Compagnie; VOC) was an early megacorporation founded by a government-directed amalgamation of several rival Dutch trading companies (voorcompagnieën) in the early 17th century. It was established on March 20, 1602 as a chartered company to trade with India and Indianised Southeast Asian countries when the Dutch government granted it a 21-year monopoly on the Dutch spice trade. It has been often labelled a trading company (i.e. a company of merchants who buy and sell goods produced by other people) or sometimes a shipping company. However, VOC was in fact a proto-conglomerate company, diversifying into multiple commercial and industrial activities such as international trade (especially intra-Asian trade), shipbuilding, and both production and trade of East Indian spices, Formosan sugarcane, and South African wine. The Company was a transcontinental employer and an early pioneer of outward foreign direct investment. The Company's investment projects helped raise the commercial and industrial potential of many underdeveloped or undeveloped regions of the world in the early modern period. In the early 1600s, by widely issuing bonds and shares of stock to the general public, VOC became the world's first formally-listed public company. In other words, it was the first corporation to be listed on an official stock exchange. It was influential in the rise of corporate-led globalisation in the early modern period.
With its pioneering institutional innovations and powerful roles in global business history, the Company is often considered by many to be the forerunner of modern corporations. In many respects, modern-day corporations are all the 'direct descendants' of the VOC model. It was their 17th century institutional innovations and business practices that laid the foundations for the rise of giant global corporations in subsequent centuries — as a highly significant and formidable socio-politico-economic force of the modern-day world – to become the dominant factor in almost all economic systems today. They also served as the direct model for the organisational reconstruction of the English/British East India Company in 1657. The Company, for nearly 200 years of its existence (1602–1800), had effectively transformed itself from a corporate entity into a state or an empire in its own right. One of the most influential and best expertly researched business enterprises in history, the VOC's world has been the subject of a vast amount of literature that includes both fiction and nonfiction works.
The company was historically an exemplary company-state rather than a pure for-profit corporation. Originally a government-backed military-commercial enterprise, the VOC was the wartime brainchild of leading Dutch republican statesman Johan van Oldenbarnevelt and the States-General. From its inception in 1602, the Company was not only a commercial enterprise but also effectively an instrument of war in the young Dutch Republic's revolutionary global war against the powerful Spanish Empire and Iberian Union (1579–1648). In 1619, the Company forcibly established a central position in the Indonesian city of Jayakarta, changing the name to Batavia (modern-day Jakarta). Over the next two centuries the Company acquired additional ports as trading bases and safeguarded their interests by taking over surrounding territory. To guarantee its supply, the Company established positions in many countries and became an early pioneer of outward foreign direct investment. In its foreign colonies, the VOC possessed quasi-governmental powers, including the ability to wage war, imprison and execute convicts, negotiate treaties, strike its own coins, and establish colonies. With increasing importance of foreign posts, the Company is often considered the world's first true transnational corporation.
Along with the Dutch West India Company (WIC/GWIC), the VOC was seen as the international arm of the Dutch Republic and the symbolic power of the Dutch Empire. To further its trade routes, the VOC-funded exploratory voyages, such as those led by Willem Janszoon (Duyfken), Henry Hudson (Halve Maen), and Abel Tasman, revealed largely unknown landmasses to the western world. In the Golden Age of Netherlandish cartography (c. 1570s–1670s), VOC navigators and cartographers helped shape geographical knowledge of the world as we know it today.
Socio-economic changes in Europe, the shift in power balance, and less successful financial management resulted in a slow decline of the VOC between 1720 and 1799. After the financially disastrous Fourth Anglo-Dutch War (1780–1784), the company was nationalised in 1796, and finally dissolved in 1799. All assets were taken over by the government with VOC territories becoming Dutch government colonies.
The company has been criticised for its monopolistic policy, exploitation, colonialism, uses of violence, and slavery.Dutch East India Company in Nusantara
The Dutch East India Company (Dutch: Vereenigde Oost-Indische Compagnie, "United East India Company"; VOC) had a presence in the Indonesian archipelago from 1603, when the first trading post was established, to 1800, when the bankrupt company was dissolved, and its possessions nationalised as the Dutch East Indies.French East India Company
The French East India Company (French: Compagnie française pour le commerce des Indes orientales) was a commercial Imperial enterprise, founded in 1664 to compete with the English (later British) and Dutch East India companies in the East Indies.
Planned by Jean-Baptiste Colbert, it was chartered by King Louis XIV for the purpose of trading in the Eastern Hemisphere. It resulted from the fusion of three earlier companies, the 1660 Compagnie de Chine, the Compagnie d'Orient and Compagnie de Madagascar. The first Director General for the Company was François de la Faye, who was adjoined by two Directors belonging to the two most successful trading organizations at that time: François Caron, who had spent 30 years working for the Dutch East India Company, including more than 20 years in Japan, and Marcara Avanchintz, an Armenian trader from Isfahan, Persia.Henry Hudson
Henry Hudson (c. 1565 – 1611) was an English sea explorer and navigator during the early 17th century, best known for his explorations of present-day Canada and parts of the northeastern United States.In 1607 and 1608, Hudson made two attempts on behalf of English merchants to find a rumored Northeast Passage to Cathay (China) via a route above the Arctic Circle. In 1609 he landed in North America and explored the region around the modern New York metropolitan area, looking for a Northwest Passage to Asia on behalf of the Dutch East India Company. He sailed up the Hudson River, which was later named after him, and thereby laid the foundation for Dutch colonization of the region.
Hudson discovered the Hudson Strait and the immense Hudson Bay on his final expedition, while still searching for the Northwest Passage. In 1611, after wintering on the shore of James Bay, Hudson wanted to press on to the west, but most of his crew mutinied. The mutineers cast Hudson, his son, and seven others adrift; the Hudsons and their companions were never seen again.
Besides being the namesake of numerous geographical features, Hudson is also the namesake of the Hudson's Bay Company that explored and traded in the vast Hudson Bay watershed in the following centuries.Mir Qasim
Mir Qasim (Bengali: মীর কাসেম; 8 May 1777) was the Nawab of Bengal from 1760 to 1763. He was installed as Nawab with the support of the British East India Company, replacing Mir Jafar, his father-in-law, who had himself been supported earlier by the East India Company after his role in the Battle of Plassey. However, Mir Jafar was in conflict with the East India company over too many demands and tried to tie up with the Dutch East India Company. The British eventually overran the Dutch forces at Chinsura and played a major role in replacing Mir Jafar with Mir Qasim. Qasim later fell out with the British and fought them at the Battle of Buxar. His defeat has been suggested as the last real chance of preventing a gradual British expansion in large parts of North East India following Britain's victory in the Seven Years War.Multinational corporation
A multinational corporation (MNC) or worldwide enterprise is a corporate organization which owns or controls production of goods or services in at least one country other than its home country. Black's Law Dictionary suggests that a company or group should be considered a multinational corporation if it derives 25% or more of its revenue from out-of-home-country operations. A multinational corporation can also be referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation, or a stateless corporation. There are subtle but real differences between these three labels, as well as multinational corporation and worldwide enterprise.
Most of the largest and most influential companies of the modern age are publicly traded multinational corporations, including Forbes Global 2000 companies. Multinational corporations are subject to criticisms for lacking ethical standards, and that this shows up in how they evade ethical laws and leverage their own business agenda with capital, and even the military backing of their own wealthy host nation-states. They have also become associated with multinational tax havens and base erosion and profit shifting tax avoidance activities.Robert Clive
Major-General Robert Clive, 1st Baron Clive, (29 September 1725 – 22 November 1774), also known as Clive of India, Commander-in-Chief of British India, was a British officer and privateer who established the military and political supremacy of the East India Company in Bengal. He is credited with securing a large swath of South Asia (Bangladesh, India, Pakistan) and the wealth that followed, for the British East India Company. In the process, he also turned himself into a multi-millionaire. Together with Warren Hastings he was one of the key early figures setting in motion what would later become British India. Blocking impending French mastery of India, and eventual British expulsion from the continent, Clive improvised a military expedition that ultimately enabled the East India Company to adopt the French strategy of indirect rule via puppet government. Hired by the company to return a second time to India, Clive conspired to secure the Company's trade interests by overthrowing the locally unpopular heir to the throne of Bengal, the richest state in India, richer than Britain, at the time. Back in England, he used his success to secure an Irish barony, from the then Whig PM, Thomas Pelham-Holles, 1st Duke of Newcastle, and again a seat for himself in Parliament, via Henry Herbert, 1st Earl of Powis, representing the Whigs in Shrewsbury, Shropshire (1761–1774), as he had previously in Mitchell, Cornwall (1754–1755).Clive was one of the most controversial figures in all British military history. His achievements included establishing control over much of India, and laying the foundation of the entire British Raj (though he worked only as an agent of the East India Company, not the British government). For his methods and his self-aggrandisement he was vilified by his contemporaries in Britain, and put on trial before Parliament. Of special concern was that he amassed a personal fortune in India. Modern historians have criticised him for atrocities, for high taxes, and for the forced cultivation of crops which exacerbated famines.
European and American trade in Qing China