East India company entered India in the year 1600. However trade route from Europe to India was started way back in 1498 when Vasco da Gama discovered sea route to India. Vasco da Gama landed in Calicut and took small spices to Europe for trade. When it sold like a hot cakes in Europe, Portuguese realised the importance of trading in India and started to do trade with India.
Portuguese realised that India has lot of spices and is very good and easy place for trading. But it was short lived when British in 1600 under the guidance of Queen Elizabeth gave permission to do trading in Indian subcontinent. East India Company or also known as English east India Company was issued a charter in the year 1600 to start doing trade in the subcontinent. It was formed mainly to do trading in the East Indies but ended up mainly in Indian sub continent.
On 31st December 1600 a group of traders called as East India Company got the monopoly from the queen to trade in East Indies. The company which started as a trading company started to rule India for many decades. The charter awarded the companies to trade with east for 15 years; however it said that if any breach by the company would get punishment of forfeiture of ship and cancellation of licence to trade. The first ship for trade which started its journey in 1601 had a terrible experience. It was travelling to Indonesia for trade in pepper and other spices. Out of 500 people on board many died and only a handful of merchants were able to reach Indonesia.
By the time British reached India, both Portuguese and Dutch had a commanding position in doing trade with India. But however British defeated Portuguese in the battle of swally in the year 1612 and started the first trading centre at Surat. In the year 1612, Sir Thomas Roe visited the Mughal emperor Jahangir and got an exclusive rights to trade and establish factories in Surat and nearby areas. The company traded mainly in Indian textiles, indigo, saltpetre(a substance used in making gunpowder) and some spices such as cinannamon, pepper, cloves etc. the company first established its factories in Surat on West coast and Machlilpatanam on East coast .
In return gesture company offered to get goods from Europe to the King. This was an important milestone for the East India Company. Gradually British started to expand and many trading posts were established in Madras (now Chennai), Bombay (now Mumbai), and Calcutta (now Kolkata). The company slowly started to trade in Cotton, Indigo and other spices which were in huge demand in Europe. In the first few decades company firmly established it foot in trading in India.
In the beginning Surat remained the headquarters until it was
replaced to Bombay between 1672-1684. Charles 2 transferred Bombay to east
India company for a mere rent of annually 10 $. Slowly Bombay was made the
headquarters replacing Surat. In the year 1640 the first fort called as fort st
George was built by the British in Madras. The fort further expanded the
trading activity of British.
In the year 1651 British set up a factory in Hugli (currently Howrah) to do trade in Bengal. Later in the year 1690, British converted the factory into fort and named it as fort William. Soon after this the company got permission to collect revenue from two villages called as Gobindapur and Kalikata. Trade in Bengal fetched huge profit to the company. The company then obtained the right to do duty free trade in Bengal, this led to misuse of rights by many traders. This led to huge loss to Nawab of Bengal who became hostile to company.
The trading prospered in India, this made the traders to establish sprawling business in British. Due to huge pressure from the traders in England the company issued a regulating act in the year 1694, which allowed any one to come and do trade in India. Slowly a rival company was established. Due to stiff competition between the two companies, the east India Company decided to merge both the companies in the year 1708. The merged company got its own set of rules. The new company consisted of 24 directors who were appointed annually. Cotton being in huge demand was the main export from India. London was an important trading centre. Silver was used for exchange of goods, but however the traders demanded to export the goods manufactured in British.
With the death of Aurangzeb the Mughal empire began to
decline. The war for the power by Marathas, Sikh and other rulers gave British gave
an opportunity to engineer a split among these kings while gaining more power
in the process. Slowly British who came to India just as traders started to
join the politics of India. They started to divide India and took control province
by provinces. This led to revolt by the Indians. Hence the administration and
control of India went directly under the control of Queen. Battle of Plassey in
1757 decisively gave more power to British. Revolt of 1857 was the game changer for East India company
If you make any purchase via a link on this site, I may receive a small commission with no added cost to you.