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The East India Company: The start of colonialism
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What was the title of the muslim emperor that ruled India in the 18th century?
During the 18th century, The British East India Company becomes more than just a trading company. It becomes the ruling power in India. Three important things had happened in the 17th century. [1] The company got the right to its own money and military force in India. [2] The British company's trading power increased while the Dutch company's decreased. [3] The company had founded several important centres of trade. The most important one was Calcutta. But now it's early 18th century.
India is ruled by a muslim emperor called the Mughal. Under him are regional administrators - Nawabs - ... such as in Bengal, the largest and most populous region. In 1717 the Mughal emperor decides that the British company no longer has to pay tolls on goods from Bengal. The most important goods are: cotton, silk, indigo dye, saltpetre - and tea of course.
In the middle of the 18th century, several Nawabs get tired of the Mughal emperor, and declare independence. The Nawab of Bengal, Siraj ud-Daulah is one of them. The various regional nawabs are now supported by different countries. Bengal is supported by the French since the French East India Company would gladly take over the British market here. Meanwhile in Europe there is a war between France and Britain, so the British company is not happy to have the French so close.
The Company has a military fort in Calcutta, Fort William, which they are now reinforcing against the French. Siraj ud-Daulah doesn't like this. The British are threatening the independence of Bengal. He attacks Fort William. Those British that survive the attack are captured and locked in a cell within the fort.
This cell is called The Black hole, is only about 20 square metres, and is made to hold one or two prisoners. But now more than 60 people are being squeezed in. It's almost impossible to close the door. The Nawab is unaware of the miniscule size of this cell. He doesn't know that it's so crowded and hot in here - and lacking oxygen - that before the night ends, at least forty people are dead.
The Baron, Robert Clive is sent to Calcutta to strike back. In this mango grove, in a place called Plassey... ... Clive leads his small army - 3,300 men - against Nawab Siraj-ud-Daulah's much larger forces - 55,000 men. But what's this? One of the Indian military leaders, Mir Jafar, refuses to let his men take part in the fighting.
So the Company wins this battle. Mir Jafar has made a deal with the British to betray the Nawab so that he himself may become Nawab. But now it's actually The British East India Company that rules Bengal. Mir Jafar is just a puppet. In 1765, the Mughal emperor gives the Company the right to collect taxes.
Not only in Bengal but also in Bihar and Orissa. But why? Well, the Mughal emperor is weary of the revolting Nawabs and also of the attacks from other people threatening his power. As a thank you for the tax income, the company pays for the Mughal emperor's court and makes sure that his power is secure in other regions of the country too. Additional deals were made with several of the -- now powerless -- Nawabs.
The Nawabs must pay several millions to be protected by the company. So now the company doesn't need money from Britain to be able to buy their goods any more. Instead they use the tax money. With that they buy goods at low prices in India and sell them for high prices in Britain and then invest the profit there. And now the Mughal emperor, as well as the Nawabs are dependent on the Company.
The British East India Company rules India. It continues to do so until 1858, when the British Parliament becomes fed up with the company and takes over. All of India becomes one British colony ruled by Queen Victoria.