East India Company- from trade to battle Ncert Class 8th

East India Company Trade-in Bengal- From Trade to Territory

  • In 1651, the first English factory was set up on the banks of Hugli river, from here the company traders (factors) used to operate the exports of goods under the company officials.  
for showing first trade post at hooghly
Dutch trade post, Hooghly river
  • In 1696, the company began building a fort around the settlement and persuaded merchants and traders to settle near the factory
  • In 1698, the company got zamindari rights over three villages: Kalikata (now Kolkata), Sutanuti and Govindapur
  • The company also persuaded Aurangzeb to issue a Farman for a duty-free trade, and exploited the power of that Farman, causing enormous loss of revenue for Bengal
  • After Aurangzeb’s death, Nawab of Bengal asserted their power and autonomy, like other regional powers. 
  • Murshid Quli KhanAlivardi khan and Sirajud-Daulah were strong rulers and they all refused grants to company, the right to mint coins and further fortification was stopped. 
to siraj ud daulah
  • The Nawab’s realized that the company is deceiving them and undermining the powers of nawab by refusing to pay tax and humiliate the nawab and their officials. 
  • The company, on the other hand, justified itself stating that the unjust demands of the local officials have ruined their trade and thus the demand for duty-free trade is valid. 
  • The continued exploitation, fortification and arbitrariness of the company, intensified the conflict and resulted in the famous Battle of Plassey. 
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