How British became king by trade?

The advent of the industrial revolution gave rise to the need for more and cheaper raw material on the one hand and the markets to sell the finished goods on the other. For this purpose began the exploration of markets and trading areas beyond Europe, and at the same time, the need to protect these trading companies from competition came. The theory of mercantile trading companies came into being, which essentially dictated that some business enterprises needed protection from various tariffs. These enterprises made a profit primarily through international trade by buying goods cheaply and selling them at higher prices.

In 1600, the East India Company was awarded a charter from Queen Elizabeth I, the then ruler of England, granting it the exclusive right to trade with the east. This right gave them protection from competition from other British companies, but it was not applicable against other European companies. Now that there were many European buyers for the same products from India. The demand and supply equation thus caused higher prices for the goods, which was reducing their profit. The only way to ensure profits was to eliminate competition of buyers which led to rivalries and fierce battles between the trading companies. They blocked trade routes to prevent the free movement of ships laden with goods and even sank them to gain monopolistic benefits.

Such rivalries also necessitated the construction of fortresses, fortifications around their trading posts and settlements. Small armies were required to protect their economic interests, but all these again started taking away a portion of their profit. On the other hand, establishing fortifications on foreign soil (India) led to conflicts with the local rulers, and it is this which caused the political alignments to take shape.

THE CONQUEST OF BENGAL

The East India Company set up their first factory on the banks of Hooghly in 1651. The Company traders, in those times known as factors, operated from this base which was essentially a warehouse and also had its offices. This factory led to the settlement of merchants and traders in its vicinity, and that is how by 1696, the Company started to make a fort around the settlement. In a couple of years, the Company obtained zamindari rights over three villages, one of which was called Kalikata, which later grew into Calcutta, now known as Kolkata. The commencement of expansion by the East India Company raised the alarm among the local Nawabs, which led to the famous battle of Plassey in 1757.

The Battle of Plassey (1757 CE)

The Battle of Plassey took place between the Nawab of Bengal Siraj Ud-Daulah and the East India Company. The East India Company was interested in increasing its control over the Bengal region as it was a very fertile area. At that time, this region comprised the present-day Bengal, Bihar, and Odisha.

The various points of conflict which arose between the Nawab and the Company were as follows.

The Misuse of Royal Farman by the Company: In 1717, the Company had received a royal Farman (an order from the emperor) from the Mughal Emperor Farrukh-Siyar to trade without paying any duty or tax, but the executives of the Company misused this Farman and indulged in private trade without paying any duty. Siraj-ud Daulah objected to this practice of evading the tax, which infuriated the Company.

Fortification of Calcutta: The English had begun to strengthen the fortification of Fort William and mounted guns on the walls of the fort without the permission of Siraj-ud Daulah.

Disrespecting the Nawab: The Company started writing arrogant and disrespectful letters to the Nawab, which hurt his pride.

These things infuriated the Nawab, who instructed the Company to stop meddling in the political affairs, stop fortifications, and pay taxes. The negotiations between the Nawab and the Company failed, and the Nawab led his soldiers to the Company's factory at Kasimbazar and took over the warehouse, captured the officials, and disarmed their soldiers. He blockaded the English ships and marched to Calcutta to establish control over the fort there.

The British Company officials in Madras were ordered to send forces that moved under Lord Robert Clive. They had the navy to assist in the fight to regain control of their assets in Calcutta.

Lord Clive entered into a conspiracy with Mir Jafar, the commander-in-chief of the Nawab, and promised to make him the nawab after the battle. He also enlisted the support of Jagat Seth (Bankers of Bengal). The battle took place in the year 1757 between the forces of Siraj-ud-Daulah and the army led by Lord Clive. The weakened army of the Nawab was defeated in the battle, and he was forced to flee. Later Siraj-ud-Daulah was captured and put to death. Mir Jafar was made the Nawab of Bengal, and he compensated the Company for the losses they had suffered due to the capturing of Calcutta. Mir Jafar distributed large sums as gifts to the Company officials. He was mostly a puppet at the hands of the British.

The Battle of Plassey led to the conquest of Bengal and paved the way for British rule in India. It exposed the weakness of the army and the Indian nawabs.