The Company Establishes Power

(1)-b (2)-a (3)-d (4)-e (5)-c

(a) Plassey (b) Mysore (c) Lapse (d) Southern

(a) False (b) False (c) True (d) False

European trading companies were attracted to India because of a number of reasons:

1. Trading with India was highly profitable and fruitful to the businessmen in Europe.
2. The European trading companies purchased goods at cheaper and sold them in Europe at the higher prices.
3. The fine qualities of cotton and silk produced in India had a big market in Europe.
4. Indian spices like - pepper, cloves, cardamom and cinnamon were in great demand in Europe. So it is because of these reasons which made India a place of attraction for manyEuropean trading companies

In the 18th century, after the death of Aurangzeb, the Bengal Nawabs asserted their power and autonomy as other regional powers were doing at that time. These Nawabs refused to grant the company further concessions, rather demanded large tributes from the company for giving them right to trade. These Nawabs also denied to give them any right to mint coins and stopped it from extending its fortifications. The Nawabs accused the company for depriving from huge amounts of revenue and undermining the authority of the Nawab. The company on the other hand, was refusing to pay taxes and writing disrespectful letters and trying to humiliate the Nawab and his officials. The company also declared that the unjust demands of the local officials were ruining the trade, which could flourish only if the duties were removed.

The Diwani right to the East India Company benefitted it in several ways like –

1. The Diwani allowed the company to use the vast revenue resources of Bengal.
2. Earlier the company had to buy most of the goods in India in exchange of gold and silver which, they imported from Britain. After the assumption of Diwani the company started to purchase the goods in India with these revenues, as a result of which the outflow of gold and silver from Britain entirely stopped.
3. Now the revenues from India could be used to purchase cotton & silk textiles and also meet various expenses including maintaining the troops, meet the cost of building the company fort and offices at Calcutta

After the battle of Plassey in 1757, the battle of Buxar in 1764 and gaining the Diwani of Bengal, the company began to expand its rule in many parts of India. For that it had devised several plans, one among them was the “Subsidiary Alliance”. According to the terms of this alliance -

1. Indian rulers were not allowed to have their independent armed forces.
2. They were to be protected by the company but pay for the Subsidiary Forces, that the company was supposed to maintain for the purpose of their protection.
3. If the Indian rulers failed to make payment, then that part of territory was taken away by the company as penalty. For example the Nawab of Awadh was forced to give over half of his territory to the company in 1801 as he failed to pay for the Subsidiary forces.

British territories were broadly divided into administrative units called Presidencies. There were three Presidencies like - Bengal, Madras & Bombay whereas under the Indian rulers administration was divided into four parts - District (Zila), Paragana, Tehsil and Villages. Each administrative unit was ruled by a Governor.
The supreme head of the administration was the Governor-General, whereas under the Indian Administrative system the supreme head was King or Nawab.
Warren Hastings introduced the new system of justice. Each district was to have two courts- civil & criminal court.
The European District Collector presided over civil courts.
The criminal courts were still under a Qazi and a Mufti.
Under the Regulating Act of 1773, a new supreme court was established.
The main figure in an Indian District was Collector.
According to his title Collector, his main job was to collect the revenue and the taxes and maintain law & order in his district with the help of judges, police officers and darogas.

Along with bringing some new ideas of administration and reform the company gradually introduced many changes in its army. Earlier the Mughal Army was mainly composed of the cavalry & infantry who were actually recruited from peasants and were given training in archery and sword. The Mughals never tried to modernize their army according to the changing period. Initially the East India Company adopted the same method when it began recruitment for its own army which was known as the Sepoy Army. They also modernized their army with guns and small tanks. With the change in warfare technology, requirements of infantry regiments became more important than the cavalry requirements. In the early 19th century the British began to introduce a uniform military culture in which soldiers were increasingly subjected to European - style of training, drill and discipline. These regulated their life far more than before. But this often created problems since caste and community feelings were ignored in building such a force of professional soldiers. Also the Indian soldiers were not given the salary and treatment like their British counterparts.