When the industrial revolution started in Europe small states did not have
sufficient raw materials for their industries, or markets for their finished
goods. These countries now started looking for markets in Asia and Africa.
England succeeded in controlling trade with India and established the East
India Company in 1600. This company was supported by the British government.
With its help England was able to extend her territorial frontiers to the
Indian subcontinent. The first factory was established at Surat in 1613.Their
most important settlement on the southern coast was Madras where they built a
fortified factory called Fort St. George. This was the first proprietary
holding acquired by the company on Indian soil. Gradually the company expanded
its trading network. By that time the company was well established in India. It
had also succeeded in eliminating the other rival European powers from India.
They also started interfering in the political affairs of the Indian rulers.
The Company officials utilized different methods to establish control over the Indian states before annexing territory from them. Further, the Company did not simply march its armies in a pure military conquest followed by annexation.
The Company officials utilized different methods to establish control over the Indian states before annexing territory from them. Further, the Company did not simply march its armies in a pure military conquest followed by annexation.
Instead,
the Company’s relationships with each Indian state were painstakingly developed
politically and economically, prior to any military confrontation. The company
posted commercial or political agents (generally called ‘Residents’) in each of
the major Indian states with which it dealt. As the Company power grew during
the 1757-1857, it used a variety of methods to reduce the autonomy of each
state it encountered.
The
Company’s rights of intervention in each state were occasionally specified in
treaties with that state. But frequently, the Company’s agents simply exercised
them without, or even in violation of, any formal treaty provision. The Company
squeezed vast amounts of capital from each state, either through tribute or
subsidy payments by the ruler or else through the manipulation of trade.
The
Company cut down the size and effectiveness of the armies under the control of
the Indian rulers, preventing these armies from deployment outside of the state
and additionally, limiting their use by the ruler for internal purposes such as
revenue collection.
By
shifting military power from the armies of the states to ‘subsidiary forces’
(paid for by the state but under control of the Company), the Company made many
of the rulers powerless to oppose it openly. Through intervention in the
internal affairs of the state, the Company finally established indirect rule
over all the Indian states which it did not immediately annex.
Thus,
early annexations took place mostly through military conquest over weakened
Indian states, but later annexations came in instances where the Company
deposed a ruler or dynasty already under its indirect rule. In quite a few
cases, like that of Bengal, the Company established varying degrees of de facto
power long before the official assumption of de jure authority took place.
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