HS 201 World Civilizations and Cultures

Lecture 025

Module D – Modern World

European Penetration of
India

V.N. Prabhakar, IIT Gandhinagar

Background

• Starting from around 7th millennium BCE, definite

evidence for outside contacts, basically for trade
relations and exchange of raw materials

• Continued later and zenith during the Harappan

civilizations, extensive trade relations with the
Mesopotamian civilization

• India’s wealth and riches known to the west, a province

under the Persians from 6th – 4th c. BCE; invasion of
Alexander enabled further interactions

• Another peak in trade relations with the west witnessed

during the late Greek and early Roman period, around
early centuries of current era

• Famous for spices, aromatics, cotton, silk, semi-

precious stones and jewelry

• Disruption in trade due to rise of Arabs, they dominated,

and Europeans did not have direct access to trade
Background

• The urge for establishing direct trade with east,

particularly with India and China, started several
missions for identifying a sea route

• Columbus discovered the New World, thinking it as

Asia, later Vasco de Gama discovered a route around
Africa, which otherwise was already known to the
Arabs, trading between East Africa, Arabia and India

• 15th and 16th c. CE saw the involvement of several

European countries, in particular, Britain, Spain,
Portugal, Dutch, initiated a process of trade cum
colonial occupation for the benefit of their own country

• In India, the Portuguese, French, Dutch and English

were the main forces, which came for commercial
interests and gradually exhibited their expansionist
purposes

• The English dominated the scenario from 18th c. CE

onwards and successfully overthrew others
Portuguese Expansion in India

• The much-acclaimed discovery of sea route by the

Portuguese Vasco da Gama was the already known route
by the Arab and the Indian sailors between east African
Coast and India

• Vasco da Gama was aided by the ruler of Mozambique in

1498 with two Muslim sailors and later in Kenya, a Gujarati
sailor helped him to reach Calicut in 23 days across the
Indian Ocean

• His first voyage did not gain any support from the local
ruler Zamorin of Calicut

• Vasco da Gama returned back in 1502 with a fleet of 10

ships; entered an alliance with ruler of Cochin, enemy of
Zamorin; involved in conflicts and causing damage to trade
interests

• Two prominent viceroys, Francisco de Almeida (1505-09)

and Afonso de Albuquerque (1509-15)

• Not a political empire, but mainly to facilitate the trade by

establishing ports and trade centres
Portuguese Expansion in India

• Almeida captured east African and Indian ports,

defeated a combined Muslim naval expedition near
Diu

• Albuquerque, as Governor of Indian Affairs laid the

foundation of Portuguese power in India

• In November 1510, he captured Goa from the

Bijapur Sultanate, established it as an important
commercial centre

• Albuquerque, seized all control points to dominate

the spice trade from India through the Cape of
Good Hope

• Own army in limited number, entered alliances with

the native rulers and engaged locals in the army;
later followed by French and British

• Lacked superior warships to gain control of the

entire Indian ocean region; but strong on west
coast
Portuguese Expansion in India

• The successors of Albuquerque managed to

gain control of more Portuguese settlements on
the west coast of India at Diu, Daman, Salsette,
Chaul and Bombay

• Other settlements at San Thome in Madras and

Hugli in Bengal; also, parts of Sri Lanka

• However, lost all except Daman, Diu and Goa,

which they retained until 1961

• Portuguese, the earliest among the Europeans

to arrive east, lost their dominance due to their
religious intolerance, clandestine practices in
trade, and the discovery of Brazil drew their
attention there

• Portuguese lost their influence in the Indian

trade during the 18th c. CE; restricted only to
Goa, Daman and Diu
Dutch Expansion in India

• The United East India Company (Dutch East India

Company) of the Netherlands was approved in 1602

• Primarily formed to facilitate the spice trade with Asia

• Dutch established factories in Gujarat, on the

Coromandel coast and in Bihar, Bengal and Odisha,
also into the lower Ganges valley

• Their important factories are Masulipatnam (1605),

Pulicat (1610), Surat (1616), Bimlipatnam (1641),
Karaikal (1645), Chinsura (1653), Patna, Balasore,
Nagapattinam (1658) and Cochin (1663)

• Concentrated on the spice trade, ended the monopoly

of Portuguese

• Indigo manufactured in Central India, Bengal, Bihar,

Gujarat were processed at Surat

• On the Coromandel coast had access to raw silk,

textiles, saltpetre, rice and Gangetic opium
Dutch Expansion in India

• The rivalry between the English and Dutch grew

in 17th c. CE mainly due to commercial interests
and also rivalries that originated in Europe

• Dutch started to expand on the Coromandel

coast during 1630-58 and later in 1672-74
obstructed the communication of East India
Company of England between Surat and
Bombay

• Also captured English ships in Bay of Bengal

• Dutch also complained to the local rulers on the

disparities in taxes between them (3.5% of trade)
and English (Rs. 3000 per annum) and sought
for equal treatment

• This could not materialize, and the British

continued to dominate
French Expansion in India

• French were the last to enter into the arena of

commercial relations with the east

• French East India Company was set up in 1664

CE

• Established factories at Surat (1668) and

Masulipatnam (1689)

• In 1673, the foundations of Pondicherry or

Puducherry was laid out, from the grant of a
Muslim ruler of Valikondapuram

• Francois Martin, who took over the settlement in

1674, developed it into an important settlement
for trade and commerce, and ultimately became
the centre of power for the French

• Also set up a factory at Chandernagore in

Bengal between 1690-92
French Expansion in India

• Early part of 18th c. CE, French occupied Mauritius,

Mahe on west coast and Karaikal on east coast; their
intentions were not ambitious and mainly trade

• Jean Francois Dupleix, the governor general for the

French in India, dreamt of a French empire in India

• He captured Madras in 1746 with the help of French

fleet

• The political scenario in Europe between the British

and France ended in a treaty in 1748 and the
restoration of Madras to the former

• Dupleix forged military alliances with the local rulers

to end British East India company; in 1751 a war
between the British and French (First Carnatic War)
ended in the complete defeat of French

• Robert Clive, on the English side emerged as an

important figure in this rivalry
 British East India Company
• British interests towards the east around last part
of 16th c. CE; in 1600 the British East India company
was formed; initially there was no state support

• British initially concentrated on the spice trade with

Sumatra, Java and Malaccas, and in 1608 they
diverted their attention to India

• In 1613 CE, Jahangir permitted British to set up

factories at Surat; Sir Thomas Roe, who came as a
representative of British King, James I, stayed from
1615-18 in Jahangir’s court; obtained privileges

• Additional sanction for new factories at Surat, Agra,

Ahmedabad and Bharuch

• 1668, Bombay was transferred to East India

Company by Charles II, as he got it as dowry from
the Portuguese; annual rent of 10 pounds; Bombay
grew prosperous and ultimately overtook Surat as
the chief port on west coast
British East India Company

• On the Coromandel coast, British first

established ports at Pulicat, Masulipatnam and
Armagaon (north of Pulicat); firman by Sultan
of Golconda in 1632 and 1634

• However, due to rivalries with Dutch and

constant pressure from local rulers, shifted
their based to Madras in 1639 as a lease from
rulers of Chandragiri

• Set up a fort known as Fort St. George; became

a major centre of power

• Further north, they established facilities at

Hariharpur, Balasore (!633), Patna, Hugli (1651)
and Cassimbazar

• Trade items being silk, cotton, saltpetre, sugar

• Settlements in Bihar, Bengal, Odisha and on

the Coromandel coast came under Madras in
1658
British East India Company

• The policies of the East India Company also

started to change

• Main reasons due to political instability, raids

by Marathas on Surat in 1664 and 1670; weak
governors in Bengal

• The Directors of the Company approved in

1687 a policy to maintain a civil and military
power, to secure revenues, and also to secure
an English domination over India on the long
run

• In 1688, an attempt by Sir John Child, to

blockade the Mughal ships and pilgrims to
Mecca to gain some privileges ended in a
submission to Aurangazeb

• In 1670, license for English trade permitted as

the English agreed to surrender all the seized
ships and to pay a sum of Rs. 1.5 lakhs in
compensation
British East India Company

• British managed to get relaxations on custom

duties for the passage of goods from inland to
ports; including from Aurangzeb in 1680 CE

• Increased revenue forced the rulers to impose more

taxes, local officials also extracted and seized
goods

• Decided to protect themselves from hostilities,

established a fortified settlement at Hughli;
hostilities grew, and British were forced out of
Hughli; settled at Sutanuti in 1687

• British even adopted a policy of capturing

Chittagong using naval power in 1689, which,
however, was thwarted by Mughals

• Truce with Mughals in 1690, British started to set up

factories at Sutanuti and also got villages like
Kalighata and Govindpur as zamindari, fortified
them with the pretext of attacks from locals; got
exemptions on payment of Rs. 3000 annually
British East India Company

• Bengal became a separate centre, under a

President and Council in 1700

• British in India had three different policies:

• Bombay: held on behalf of English crown, no

Indian prince having any jurisdiction

• Madras: Powers based on the acquiesance of

Indian rulers and English charters

• Bengal: Authority over the English settlers with

English laws and charters; the locals were treated
differently with an authority as a zamindar

• In 1715, the British attempted to secure privileges

throughout the Mughal Empire

• A surgeon in the mission, John Surman, cured

Farrukhsiyar of a disease, which pleased him, and
he issued firman granting privileges to British
throughout India
British East India Company

• Benefits from the new agreement

• Trading in Bengal, free of all duties, with an
annual payment of Rs. 3,000
• Permitted to rent additional property
around Calcutta
• Exemption from duties throughout the
province of Hyderabad
• For their occupation in Madras, only the
rent to be paid
• Exempted from payment of all custom
duties and rents at Surat, and an annual
payment of Rs. 10,000
• Coins of the company minted at Bombay to
be circulated throughout the Mughal
dominions
British East India Company

• The additional benefits accorded to the British

largely favoured them, even though opposed
by the regional rulers, it was continued

• By 1735, population of Calcutta increased to

100,000 and the trade reached ten thousand
tons of cargo per year

• On the west coast, due to the Maratha sea

captain, Kanhoji Angria, the interests of Britsh
suffered

• They could gain control of the port of

Swarnadurg (1755) and Gheria, capital of
Angria (1757)

• At Madras, they could maintain good relations

with Nawab of Carnatic and his overlord,
Subehdar of Deccan; British took possession
of five towns near Madras by 1709
British East India Company – Success in Bengal

• The political turmoil in Bengal after the death of Alivardi

Khan in 1756 CE due to the infighting for the throne

• Siraj-ud-daulah managed to succeed, but caught with

internal strife

• Meanwhile, conflict with British at Calcutta, due to the

latter strengthening the fortification, with arms and
ammunition

• Siraj-ud-daulah seized Calcutta in 1756; fall of Calcutta

prompted the British to send their army from Madras,
who had recently defeated the French

• Clive and Watson came from Madras, recaptured

Calcutta in 1757; Siraj-ud-daulah entered into a treaty at
Alinagar conceding all demands of the British

• At the battle of Plassey (1757), Siraj-ud-daulah was

defeated and British gained control of a larger territory;
Mir Jafar (general of nawab and conspired with British)
was put on the throne
British East India Company – Success in Bengal

• Dutch, in the meanwhile tried to interfere, and defeated

by Clive at Bedara (West Bengal) in 1759

• After the death of Mir Jafar, the British even tried to take
over the administration; only to retract due to lack of
legalities; Mir Kasim (son-in-law of Mir Jafar) was put on
the throne by the British

• The British, in addition to 24 Parganas, got control over

the districts of Burdwan, Midnapore and Chittagong

• Conflicts between Mir Kasim and British, due to

exploitative acts of the latter, in trade and non-payment
of taxes; individuals also now engaged in trade

• Mir Kasim was defeated in 1763 at various places, fled to

Patna, and later sought the help of Shuja-ud-daula
(Nawab of Oudh) and Shah Alam II (Mughal ruler), for a
confederacy

• However, the British defeated them at Buxar in October

1764
British emerged as rulers of Bengal

• British entered into series of conspiracies, again supported Mir

Jafar, assuring him concessions, and later his son, Najim-ud-
daulah, assuring him the throne

• A treaty, which enabled the placing of entire administration to a

Deputy Subehdar, appointed by the British, and cannot be
removed without their consent

• Entire administration came under the British, Nawab only a

figurehead

• Robert Clive became governor of Bengal for the second time in

1765 CE

• Fully utilizing the defeat of Shah Alam II and Shuja-ud-daulah,

Clive managed a treaty of Allahabad (1765)
• Oudh restored to Nawab on payment of Rs. 50 lakhs
• Allahabad and adjoining tracts detached from Oudh and
handed over to Shah Alam II
• East India Company gained Diwani of Bengal, Bihar and
Odisha (a legal recognition)
First War of Indian Independence 1857

• Causes
• Dalhousie’s vigorous adoption of Doctrine of Lapse,
removal of Mughal Emperor from Red Fort to Qutb Minar,
Delhi
• Taking over large tracts of land, estates, depriving the
Indian states with pension, disbanding the armies of
natives
• Spread of western civilization, railways, telegraph system,
abolition of sati, infanticide, rights of converts from
Hinduism, legalizing widow remarriage, aggressive
attitude of Christian missionaries, agitated the minds of
Indian society
• Indian soldiers were put under undue pressure and
trouble, long drawn campaigns and wars, demands for
proper allowances for fighting in remote locations unmet,
trouble already brewing in small revolts in 1844, 1849,
1850 and 1852
• Recruitment of army not on regional basis; Bengal army
contained soldiers from Oudh and Northwestern
Provinces
Outcomes

• Immediate outcome was the taking over of the affairs by

the British Government from the East India Company

• Government of India Act passed on 2nd August, 1858;

Governor General renamed as Viceroy, India became a
territorial state of Britain

• The proclamation of the Queen Victoria of Britain was

announced by Lord Canning at Allahabad on 1.11.1858,
often known as Magna Carta of the Indian people:
• Confirmed the treaties and engagements of East
India Company with the Indian princely states
• Promised to respect the rights, dignity, and honour
of native princes
• Due regards to the ancient rights, usages and
customs of India
• Disclaimed all desired to increase territorial
possessions through encroachment
• Granted general amnesty to all offenders
Outcomes

• Complete reorganization of army, European element

strengthened in the Presidency army; number of
European soldiers increased

• Indian states had to accept the paramountcy of British

Empire

• Feeling of hostility and racial discrimination grew

between the British and the Indians

• Legislative Council of 1861 enabled a consultative

mechanism with the Indians

• Traditional structure of Indian society started to break

down

• A strong middle class emerged, influenced by the

western modern ideas, with a heightened sense of
Indian nationalism

• Indian Civil Service was opened to Indian males

between the age of 17 and 22; exam could be given in
England only
Drain of Wealth

• Bengal dominated the bulk of the trade during the 18th c.

CE; Hindu, Armenian and Muhammadan merchants
traded with other parts of India and Turkey, Arabia,
Persia and Tibet

• Balance of trade in favour of Bengal; surplus value paid

in bullion

• Export items from Bengal included cotton, silk, muslin,

raw silk, sugar, salt, jute, saltpetre, opium

• Battle of Plassey started the economic drain; Mir Jafar

and Mir Kasim paid enormous money to secure the
throne; securing control of trade, private trading, export
of opium to China, the wealth substantially found its way
to England; total drain of wealth from 1757-1780 alone
estimated to 38 million pounds

• Bengal became poorer by at least Rs. 60 crores (~Rs. 300

crores of 1900)

• Monopoly over the trade; cotton and silk weavers; paid

very less, even less than cost of raw materials; by force
Drain of Wealth

• Ultimately many cotton and silk weavers abandoned their

profession; end of 18th c. CE, scarcity for weavers; thus,
the British systematically ruined the cotton and silk
industries of Bengal, once flourishing ones

• Indian industries were always superior and flourishing and

exports exceeded imports; bullion in gold due to excess

• British introduced legislations in 1700 and 1720 banning

wearing of cotton and silk cloths imported from India;
demand still in other European countries; British imported
and resold them for profits

• Industrial revolution, flurry of cotton mills, enabled the

import of raw materials from Bengal and exporting
finished products to Bengal, thus furthering the drain of
wealth

• Flourishing industries of Bengal ruined, inland trade

passed on to the privileged class, crushed the entire trade
and industry of Bengal

• More and more people were driven towards agriculture;

loss of capital towards industries
Drain of Wealth

• Some hallmark industries:

• Cotton, silk, wool, muslin, brass, copper, bell-metal,
jewellery, stone carving, filigree in gold & silver,
artistic work on marble, sandalwood, ivory, glass,
tannery, perfumery, paper making, ship building

• The prominence of the Indian industries, trade and

commerce started to decline from mid-18th c. CE and by
the 19th c. CE, the British had completely taken over,
reaping the benefits

• Policy of British government

• Cheap goods produced by machinery
• Unwillingness to protect Indian arts and crafts
• Created obstacles and obstructed the Indian
industries
• Gradually converted into a plantation nation for raw
materials, and dumping ground for finished
products
Drain of Wealth

• Result of mechanism put forth by the British for

unilateral exploitation of revenue generated through
exports

• Done in many means and ways:

• home charges (annual remittances), returns on
account of irrigation and railway systems, Indian
office exorbitant expenses, remittances to families in
England, payments for British goods imports,
interest rates on public debt held in Britain, and
undervaluation of trade and Indian labour

• Export of Indian wealth and treasure between 1858-69

was 417 million pounds; revenue generated was not
invested in India; only landed in England; in the case of
Canada and Australia it was opposite, and the capital
generated was invested in economic development

• Capital investment from Britain drained more; e.g.

Railways was used to move the materials and goods, raw
materials, to benefit the external trade only, without any
benefit for the Indians
Nature of Trade during British Rule

• British managed to retain monopoly and excessive

benefits from the beginning

• The opening up of Suez Canal in 1859 shortened the

travel from three months to three weeks

• The average annual Indian trade from 1855-1860: Rs.

55 lakhs; 1869-1974: Rs. 90 crores; 1900: >Rs. 200
crores; 1928-29: Rs. 900 crores

• India exported jute, cotton, wheat, oilseeds, tea, and

imported goods of European manufacture

• Imports now include luxury items like silks and

woollens, leather goods, cabinet-ware and furniture,
clocks and watches, earthenware and porcelain, glass
and glassware, paper, stationary, cigarettes, cars,
scents, motor vehicles, etc

• Imported goods indicated new habits and

preferences; the policies of British totally replacing
the Indian industries, which otherwise would have
flourished even now