How Company establishes power

From Trade to Territory of Class 8


The British East India Company, was a joint-stock company that was granted an English Royal Charter by Elizabeth I on December 31, 1600, with the intention of favoring trade privileges in India. The Royal Charter effectively gave the newly created The Honorable Company of Merchants of London Trading into the East Indies (HEIC) a 15-year monopoly on all trade in the East Indies.

The Company transformed from a commercial trading venture to one which virtually ruled India as it acquired auxiliary governmental and military functions, until its dissolution in 1858. This followed the anti-British rebellion (or First War of Indian Independence), after which the British government decided that direct rule over India would be more appropriate.

company establishes power

Aurangzeb was the last powerful Mughal emperor. After his death in 1707, many Mughal governors (subedars) and big zamindars began asserting their authority and establishing regional kingdoms. As powerful regional kingdoms emerged in various parts of India, Delhi could no longer function as an effective center. By the second half of the eighteenth century, however, a new power was emerging on the political horizon - the British.

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