The East India Company (EIC) was established in 1600 as a trading company in England. It later became a colonial power in India, ruling from 1757 to 1858 before British Crown rule began.
1. Background of Formation
✔ European Trade in India:
- Before the British, Portuguese, Dutch, and French dominated trade.
- India was rich in spices, textiles, and precious stones.
✔ Need for a Trading Company:
- England wanted to break the Portuguese and Dutch monopoly over trade with India.
- Inspired by Spanish and Portuguese success in overseas trade.
✔ Royal Charter by Queen Elizabeth I:
- On 31 December 1600, Queen Elizabeth I granted a Royal Charter to a group of merchants.
- This gave the East India Company (EIC) exclusive rights to trade with the East for 15 years.
2. Establishment and Early Trade
✔ Company Name: “The Governor and Company of Merchants of London Trading into the East Indies.”
✔ First Voyage (1601): Led by James Lancaster, the Company reached Sumatra (Indonesia) and India.
✔ First Factory in India (1613): At Surat, with permission from Mughal Emperor Jahangir.
✔ Rivalry with Portuguese & Dutch: Defeated Portuguese in the Battle of Swally (1612), securing dominance in India.
3. Expansion in India
✔ Key Treaties with Indian Rulers:
- 1615: Mughal Emperor Jahangir allowed trade in exchange for European goods.
- 1639: Acquired Madras from local rulers.
- 1668: Got Bombay from King Charles II, who had received it as a dowry from the Portuguese.
- 1690: Established Calcutta, later developed into Fort William.
✔ Major Trading Centers Established:
- Surat (1613) – First factory.
- Madras (1639) – Important port.
- Bombay (1668) – Became a strong naval base.
- Calcutta (1690) – Later became the capital of British India.
4. Transition from Trade to Rule
✔ Battle of Plassey (1757): Defeated Nawab Siraj-ud-Daulah, marking the start of British political control.
✔ Battle of Buxar (1764): Secured Diwani rights (revenue collection) in Bengal, Bihar, and Orissa.
✔ Expansion through Wars & Treaties: Defeated Mysore, Marathas, and Sikhs by the 19th century.
5. Significance of the East India Company
✔ Started as a trading enterprise but became a political power in India.
✔ Created a strong naval force to protect trade interests.
✔ Introduced English education, land revenue systems, and administration policies.
✔ Ruled India until 1858, when the British Crown took over after the Revolt of 1857.
6. MCQs on Formation of East India Company
- In which year was the East India Company founded?
- (a) 1498
- (b) 1600
- (c) 1613
- (d) 1757
- Answer: (b) 1600
- Who granted the Royal Charter to the East India Company?
- (a) Queen Victoria
- (b) King Charles II
- (c) Queen Elizabeth I
- (d) King George III
- Answer: (c) Queen Elizabeth I
- Where was the first East India Company factory established in India?
- (a) Calcutta
- (b) Madras
- (c) Bombay
- (d) Surat
- Answer: (d) Surat
- Which Mughal Emperor allowed the British to trade in India?
- Which city was given to the British as dowry by the Portuguese?
- (a) Madras
- (b) Surat
- (c) Bombay
- (d) Calcutta
- Answer: (c) Bombay
7. Subjective Questions on Formation of East India Company
- Describe the factors that led to the formation of the East India Company.
- Explain the significance of the Royal Charter of 1600.
- How did the East India Company expand its trade in India?
- Discuss the major trading centers established by the Company in India.
- How did the East India Company transition from a trading enterprise to a ruling power?
The East India Company started as a trade organization but soon dominated Indian politics and economy, leading to British rule in India. Let me know if you need maps, mind maps, or timelines! 🚀