British East India Company

Notes

The East India Company was formed on 31 December 1600 through a royal charter from Queen Elizabeth I, granting a monopoly of trade with the East to the "Governor and Company of Merchants of London Trading into the East Indies".

Early footholds

1608: Captain William Hawkins reached Jahangir's court but failed to get a trade concession.
1612: Captain Thomas Best defeated the Portuguese at Swally; the Mughals allowed a factory at Surat (1613).
1615-19: Sir Thomas Roe, James I's envoy, obtained a farman from Jahangir to trade and establish factories.
First factories: Masulipatnam (1611), Surat (1613).
1639: Fort St George (Madras) by Francis Day, from the Raja of Chandragiri.
1668: Bombay, leased from Charles II for £10 a year.
1690: Job Charnock founded Calcutta; Fort William (1696). In 1698 the Company obtained zamindari rights over Sutanuti, Kalikata and Govindpur.
The three Presidencies: Bengal (Fort William), Madras (Fort St George), Bombay.

Farrukhsiyar's Farman (1717)

Granted after William Hamilton, the Company's surgeon, cured the emperor. Called the "Magna Carta" of the Company.
Duty-free trade in Bengal for an annual payment of ₹3,000, the right to issue dastaks (passes), to rent more villages around Calcutta, and the right to mint coins at Bombay. Misuse of dastaks by private traders later caused conflict with the Nawabs.

Structure and regulation

The Company was run by a Court of Directors (24) elected by the Court of Proprietors.
A rival company was formed in 1698; they merged in 1708 as the United Company of Merchants of England Trading to the East Indies.
Regulating Act, 1773: Governor of Bengal became Governor-General. Pitt's India Act, 1784: Board of Control; dual control. Charter Act, 1813: ended the trade monopoly (except tea and China). Charter Act, 1833: ended its commercial functions. Government of India Act, 1858: transferred power to the Crown.

Key Points

Founded 31 December 1600 by Queen Elizabeth I's charter.
Roe's mission (1615); Surat factory (1613); Madras (1639); Bombay (1668); Calcutta (1690).
Farrukhsiyar's Farman (1717) is the "Magna Carta" of the Company.
Presidencies: Bengal, Madras, Bombay.
Charters: 1773, 1784, 1813, 1833; ended in 1858.

MCQs

Q1. Who obtained a farman from Jahangir allowing the English to trade? (a) William Hawkins (b) Thomas Roe (c) Thomas Best (d) Job Charnock Ans: (b). Sir Thomas Roe, 1615-19.

Q2. The Farman of 1717, granting trading privileges to the Company, was issued by: (a) Jahangir (b) Aurangzeb (c) Farrukhsiyar (d) Shah Alam II Ans: (c). After William Hamilton cured him.

Q3. The English East India Company was established in: (a) 1498 (b) 1600 (c) 1602 (d) 1664 Ans: (b).