EHI - 5

Fourth Part

Q  Write a note on the expansion of British rule into South India.               12

A  The expansion of the British in South India was basically the outcome of the hostilities between the English and the French East India Companies. South India was the main arena for French activities. Not only was Pondicherry their capital, but in the neighboring princely states like Hyderabad and Mysore, they wielded great influence. In order to make maximum

profits, it was necessary for a trading company to eliminate all competition and establish its monopoly. Hence it had become very essential for the British to eliminate the hold of the French from this region. With the outbreak of the war in Europe, the stage was set for the First Carnatic War (1740-1748) in India between two rivals. The first war didn’t yield any decisive outcome and it ended after the conclusion of hostilities in Europe between the two rivals.  

   Unlike the first Carnatic war, there was no European war to provide a pretext for the outbreak of hostilities between the English and the French in the second instance. Rivalry in India provided the context, but it became a life and death struggle for the survival of the English and French EIC in India. It was an attempt by both the trading firms to consolidate and extend their respective influence in South India. In this war, the British were the clear winners who diplomatically and militarily outpaced the French and established firmly in South India. 

          By 1756, with the outbreak of the Seven Years' War between the English and the French in Europe the stage was set for the final showdown in India. In this war, the British were in commanding position and after overpowering Bengal were ready to take on the French. In the decisive battle of the third Carnatic War which was fought at Wandiwash on 22 January 1760, the French were defeated and after losing most of the territories were confined to Jinje and Pondicherry. Finally, in May 1760, the English laid siege to Pondicherry. 

        In the aftermath of the third Carnatic War, the English reign Supreme over South India as all the European Rivals had been eliminated and the only task left was subjugating Indian rulers in South India. The major power being the Mysore and Marathas. By the second decade of the 19th Century, the British had secured their position firmly in South India as both the Marathas and Mysore states were defeated by the British.

Q  Write a note on the process of British expansion in North India.                 20

A  There were two major powers in North India these were Awadh and Punjab.

Awadh - The Company's fortunes improved dramatically when Company in collaboration with the influential Indian merchants & nobels, defeated the nawab of Bengal Siraj-ud-Daula in 1757 at Plassey. The massive land revenues generated from fertile agriculture areas were used by the British to enrich its servants and strengthen its army by recruiting more men in the army . The results were the defeat of combined forces of Mir Kasim, Shuja-ud-Daula (the nawab of Awadh), and the Mughal Emperor, Shah Alam II by the British. 

       Although Shuja-ud-Daula was restored the throne of Awadh, he was firmly bound to the Company by a treaty(Subsidiary alliance). It provided for mutual defence (paid for by the nawab), free trade agreement for the company in his territory, and payment of Rs.5,000,000 as war debts. The ramifications of this treaty proved enormous for the history of North India. The company through the resident stationed at the Awadh capital was able to encroach upon the powers of the rulers so much so that by the beginning of the 19th Century, many of the higher officials, courtiers and large landholders of the province repose their faith in the company and consider it as a real source of power. Even members of the Nawabi family relied on companies' intervention for securing the position of the Nawabi. 

        Besides slowly annexing territories from the Awadh rulers the Company was also successfully building an alternative base, a source of authority for itself inside Awadh. Through the right of providing extraterritorial protection, the successive Residents tried to build a substantial constituency for the Company which extended from bottom to the top. The sepoys from Awadh, enlisted in or retired from the Company's armies, represented the lowest rung of it. The Taluqdars who were displaced by the action of the Nawabs and who successfully appealed to the Company for the restoration of their lands formed the middle of the ladder. The friends and relatives of the deposed or unsuccessful members of the Nawabi family were the highest in order to whom the Company's extended protection.

       Thus by creating an alternative source of authority for itself in Awadh, the company undermined the legitimacy of the Awadh rulers. This way the Company kept on encroaching on the material and moral domains of the Awadh rulers so much so that the annexation of 1856 became a logical conclusion.

Punjab - After the death of Maharaja Ranjit Singh in June 1839, Punjab was in the grip of political instability and rapid changes were taking place in the government. Kharak Singh, Nav Nihal Singh, Chand Kaur, Sher Singh & finally Dalip Singh were brought to the throne in quick succession. Conspiracy & intrigues were widespread and the army played a major role in all these changes that took place in the government. Prolonged and bloody battles were generally fought to bring the claimant to the throne or to dislodge the incumbent. 

           The British soon found their opportunity due to the repeated changes in the government of Punjab. The corruption among the officials, general indiscipline in the army and the disenchantment of the mercantile class were other factors that favored the British. An alliance was formed with the high ranking officials in government and army by British which proved beneficial to the British in the first war between Company and Sikh state. Due to the treachery of high officials, the formidable Punjab army was defeated in a series of encounters and was forced to sign the humiliating treaty of Lahore in 1846. Under the treaty, the British annexed the Jalandhar Doab region. The Punjab army was reduced to 20,000 infantry and 12,000 cavalry and a strong British force were stationed at Lahore. The British Resident at Lahore was given extensive authority to intervene in all matters of the state department. The British stationed their troops in Punjab while the expenses were to be paid by the Lahore government. 

         All these, however, did not satisfy the British as their ultimate aim was direct rule over Punjab. Taking advantage of the revolt by the Diwan of Multan in 1848 against the Lahore Durbar, the British sensed the opportunity to annex Punjab. In the campaign of 1849, the Sikh forces were decisively defeated and Punjab was annexed. Thus the British swallowed the very kingdom they were supposed to protect.

Q  Briefly outline the main changes in the European economy during the 18th century. 12

A  During the 18th century the changes in agriculture and industry brought about by the use of technology were such that they revolutionized the European economy and the society in particular Britain. This period witnessed the transformation from a mercantile economy to an industrial economy in Europe. 

           Political stability, a growing demand for products and the society which has the will to industrialize brought England on the threshold of the Industrial revolution. The necessary combination of capital, entrepreneurship, and technology brought industrial revolution. Such was the pace of growth after the 1780s that it revolutionized production and laid the foundations of the modern society. The ability to exploit the opportunities and utilize new inventions for production helped in getting a competitive advantage both in the domestic and external market which was crucial for the economy. 

           By the eighteenth century, Britain had earned the reputation of being the shopkeeper of the world. In addition to cotton textiles, metallurgy especially copper and steel manufacture, glass & paper industries experienced tremendous growth. The invention of the steam engine and its application in modernizing the transport sector further boosted the European economy. 

         The Industrial Revolution brought about a series of changes in the organization of production. Based on the rapid usage of technology the factory system started replacing the putting-out system. In the putting out System the artisan owned his tools and produced finished goods at home for the merchant by taking advances. In the factory system, the labor was employed by the factory owner; the worker did not own tools and machines, he only received wages for rendering labour services. The Industrial Revolution meant a radical change in production as well as redistribution of Labour from agriculture to industry.

        Thus in the 18th century, along with the creation of a working-class, the capitalist class also emerged and matured. Capitalists came from the ranks of merchants, landlords and also better off artisans who invested capital in industries. They used wage Labor and technology to make profits in the market. The profits were re-invested and competitive advantage was sought by using better and efficient techniques of production. Thus the 18th century witnessed tremendous change in the European economy from a trading mercantile dependent economy to an industrial economy.

Q  Mercantilism                                                           6

A   In the 17th century the countries of Europe were under the influence of a set of economic ideas and practices known as mercantilism. These can be summarized as- 

1.  It was believed that the volume of world trade is more or less fixed. State policies should be framed in such a manner that the country should strive to get maximum share of this world trade.

2. Precious metals. i.e gold and silver denotes the wealth of the nation. If a nation did not possess a natural source of precious metal, it should get it through trade. 

3.  In order to accumulate precious metals, the government should frame a favorable balance of trade policy. It means the value of exports should always exceed the value of imports. In other words more gold and silver should come into the country than the amount going out.

4. To preserve and increase this balance, high tariffs should be imposed to reduce imports of manufactured goods. Lower tariffs to encourage the import of cheap raw Material and bounties on exports should be given.    

5. The state should take steps to promote exports, especially of manufactured goods by establishing state-run workshops and factories, by granting monopolies and regulating the guilds.

6.  Colonies should be used both as a market for exports and as sources of supply cheap raw material and if possible precious metals. If necessary, wars must be waged against rivals for the protection of the colonies.  

7.  It was believed that colonies should be feeders to the mother country. Manufacture of certain commodities was either forbidden or discouraged for fear of spoiling the market of the mother country and exhausting the supply of raw materials. All colonial trade should be a monopoly of the mother country.  

Q  Discuss the nature and pattern of European trade in Asia during the 17th century.  12

A   When European companies started trading with India in the seventeenth century their main problem was that they had few goods to offer in return for Indian commodities. For nearly three centuries the balance of trade was largely in favor of Asia and they had to struggle with the problem of financing an adverse balance of trade with Asia. Apart from wine and oil their ships brought little from Europe. Gold and silver brought into Europe from the mines of South America was used to finance trade with Asia and in particular India.

           The European companies were facing severe criticism at home for doing this and were under constant pressure to find other ways of paying for their trade-in Eastern goods. A partial solution to this problem was found by capturing the intra-Asian trade. The Europeans started making good profits by bringing Spice Islands cloves and Japanese copper to India and China, Indian cotton textiles to South East Asia and Persian carpets to India thereby paying for some of their imports from India. However, only in the later part of the eighteenth-century when the English started getting land revenues from Bengal and by exporting opium to China that a final solution to the problem of the deficit trade was found. 

            In the seventeenth century, the bulk of the profits of European companies came from the sale of commodities brought from Asia to the markets of Europe, Africa, the American continents and to the Middle East. A triangular trade had developed between Europe, the Americas and the West Coast of Africa. Trade with the East was an important part of it.

           Spices were very high on the list of commodities demanded by the Europeans. Among spices, it was pepper alone which dominated the trade in the sixteenth and early seventeenth century. However, towards the end of the seventeenth century, there was a change in the commodity structure of the trade. Cotton textiles, silk, and saltpeter became very important in trade in place of spices. Indian textiles were regularly demanded by the English and the Dutch companies from the second decade of the 17th century.

Europeans were using Indian textiles in the trade with other parts of Asia where it was demanded as a barter commodity. Indian textiles are famous for their range, variety, and quality. Saltpeter required for the manufacture of gunpowder and indigo were other commodities which was also in much demand by the European companies in the 17th century.

Q  Discuss the structure and pattern of trade of the European companies with India during the 17th 18th centuries       12

A  Above answer and then industrial revolution and India becoming a source of raw material and market for finished goods.  

Q  Why did the British try to expand their control beyond Indian borders? Explain with reference to China and Afghanistan.   20     

A   English interest in expansion outside India was influenced by two major factors:-

Markets and supplies:  The British wanted to find new markets for the goods procured in India. They also required goods in exchange for trade with China. Apart from these, the British wanted to procure material like saltpeter for its military in South and South-East Asia;

Strategic: There was the need- to safeguard the Indian empire and the trade routes to China and India. 

With China - By the 1770s, Bengal had been milked dry due to policies adopted by the British and its economy was in shambles. Consequently, the profits of the East India Company declined and the Company started reporting massive losses. Such losses were doubly troublesome because not only did they hurt the dividends of the powerful shareholders of the Company in England but also jeopardized the extremely lucrative trade with China. Chinese tea, silks, and nankeens sold at a high profit in Europe and the Company had the English monopoly over this trade. However, the Chinese at this time sold their goods only in exchange for silver; and the silver had been provided mostly by Bengal. 

While the Company was establishing itself in India it had a growing trade with China. As in India, so in China-the Company had a monopoly over trade. But from the Company’s point of view, there were two key problems faced by them in trade -

#  that the Chinese government-controlled it closely and they were restricted to the port city 

#  they only traded mostly in exchange of silver

    Due to depletion of the wealth of Bengal the company sought to pay for the China trade by-

#  replacing silver by opium grown in the Malwa region of Central India and

# by obtaining-high-priced spices from South-East Asia for sale in China and Europe. 

The latter compelled the Company to expand itself into South-East Asia.

Q  Monopoly trade                                                         6

A  The English East India Company was granted a monopoly to trade in the East by the government of England through a charter. It means the East India Company was legally entitled and has exclusive control of trade with India and other countries in the East. All other British traders and Companies were barred from trading with India and East. There were some other countries left like Portuguese, French, etc along with Indian traders who were working along with East India Company in the market. The EIC used diplomacy and warfare to sideline other countries from trading with India. After gaining political control over territories in India, they debarred Indian trading firms and merchants from dealing in markets. Thus the Monopoly of EIC was established. Thereafter it started harassing weavers and artisans who were bullied to supply the goods below the market price. Thus the artisans were reduced step by step to the position of bonded laborers by the denial of free access to the market. They were forced to supply their produce to the Company at low prices arbitrarily fixed by the Company.