OCR Specification focus:
‘Relations with France, the Dutch and the Mughal Empire; consequences of Company rule for India, c.1730–1773.’
The mid-eighteenth century witnessed dramatic shifts in India’s balance of power, shaped by European rivalry and declining Mughal authority, allowing the East India Company to expand its influence.
European Rivalries in India
Franco-British Competition
The most significant external factor shaping British expansion in India was rivalry with France. The French East India Company, centred on strongholds such as Pondicherry, sought to extend its own trading and territorial interests. This led to:
Competition for alliances with local rulers.
Military conflicts that paralleled European wars, particularly the War of Austrian Succession (1740–1748) and the Seven Years’ War (1756–1763).
Strategic use of naval power to secure ports and supply routes.
The Carnatic Wars (1746–1763) marked the decisive phase of Anglo-French rivalry. The British, through the East India Company, eventually secured supremacy due to naval dominance, better financing, and alliances with Indian powers.
Map showing the Carnatic region of southern India, the theatre for the Carnatic Wars between British and French forces and their Indian allies. It clarifies the strategic importance of the Coromandel Coast. The map is simplified and does not show changing battle lines. Source
The Role of the Dutch
The Dutch East India Company (VOC) had been a formidable force in the seventeenth century, dominating spice trade routes. By the mid-eighteenth century, however, Dutch influence in India waned.
Their commercial focus remained on the East Indies (modern Indonesia), rather than India.
Dutch settlements like Negapatam played only a minor role compared with British and French centres.
The decline of Dutch power allowed Britain to face fewer European competitors in India after 1763.
Wider European Context
European conflicts spilled over into India, where alliances with local rulers could shift quickly. This international competition intensified Company reliance on military power rather than purely commercial strategies.
Relations with the Mughal Empire
Mughal Decline
The Mughal Empire, once dominant, was in a state of fragmentation during this period. After the death of Emperor Aurangzeb (1707), central control weakened, leading to:
Rising independence of regional governors, or nawabs.
Increased opportunities for European companies to manipulate politics.
A vacuum of authority that made alliances critical for survival and expansion.
Nawab: A provincial governor or ruler in the Mughal Empire, often exercising autonomy in the eighteenth century.
Key Developments
The Battle of Plassey (1757), led by Robert Clive, was pivotal. The Company, allied with disaffected Bengali elites, defeated Nawab Siraj-ud-Daulah.
This victory effectively shifted Bengal under Company influence, giving access to enormous wealth and revenue.
Mughal emperors became figureheads, granting the British diwani rights (the right to collect revenue) in Bengal, Bihar, and Orissa in 1765.
Benjamin West’s 1818 painting shows Mughal emperor Shah Alam II granting Diwani (revenue-collecting rights) to Robert Clive in 1765. It illustrates the symbolic transfer of fiscal authority from the Mughal court to the Company. The scene is an artistic reconstruction rather than a literal record. Source
Imperial Legitimacy
Despite Mughal weakness, British officials often sought imperial sanads (official grants or decrees) to justify their authority. This demonstrated how Mughal traditions still carried symbolic weight.
Consequences of Company Rule in India
Political Consequences
The Company’s growing territorial role transformed it from a trading body into a ruling power:
After Plassey and the Battle of Buxar (1764), the East India Company gained decisive political dominance in Bengal.
The Mughal emperor Shah Alam II formally recognised the Company’s fiscal authority, though in reality he had little control.
This created a dual structure of governance, where Company officials managed revenue while leaving local rulers nominally in place.
Economic Consequences
British control produced profound shifts in the Indian economy:
Revenues from Bengal funded Company armies and operations, reducing reliance on imports of bullion from Britain.
Indian artisans and weavers were increasingly subject to Company regulation, with trade skewed in favour of British merchants.
Agriculture in Bengal was reshaped to prioritise cash crops like indigo and opium for export.
The extraction of wealth from Bengal has been described as the beginning of the “drain of wealth” to Britain.
Social and Cultural Consequences
The imposition of Company rule disrupted existing social balances:
Local rulers and elites who resisted were displaced, while collaborators gained new positions of authority.
The disruption of traditional patronage systems weakened Mughal cultural and political structures.
Famines, such as the Bengal Famine of 1770, were worsened by Company revenue demands, reflecting the human cost of imperial expansion.
Strategic Shifts by 1773
By 1773, the East India Company had transformed from a trading corporation to a territorial power in India, primarily due to:
Victory over France in the Seven Years’ War, which eliminated French threat in India.
Decline of Dutch influence, leaving Britain unrivalled among European powers.
Exploitation of Mughal weakness, using alliances, military victories, and fiscal rights to consolidate control.
The British Crown began to question the unchecked power of the Company, culminating in the Regulating Act of 1773, which sought to increase parliamentary oversight of its Indian administration.
Key Points to Remember
Anglo-French rivalry defined mid-eighteenth-century India until Britain’s decisive victory.
Dutch decline left Britain with little European competition after 1763.
Mughal decline created opportunities, but imperial legitimacy was still valuable.
Company rule had significant political, economic, and social consequences for India.
By 1773, Britain’s imperial expansion in India was both a commercial and a territorial reality.
FAQ
Indian rulers and factions were crucial in tipping the balance between European powers. The British allied with local elites like the Arcot nawabs, while the French supported rival claimants.
These alliances provided European forces with manpower, resources, and political legitimacy. Without such support, neither side could have sustained campaigns in India.
The Dutch prioritised their lucrative spice trade in Southeast Asia over Indian ventures.
Their settlements in India, such as Negapatam, were small and strategically limited.
The VOC lacked the naval strength in the Indian Ocean to challenge Britain or France.
By the mid-1700s, their resources were overstretched, making them a declining force.
The 1765 grant allowed the Company to directly collect revenue from Bengal, Bihar, and Orissa.
This:
Gave the Company financial independence from Britain.
Allowed them to fund armies and administration locally.
Transformed their role from merchants into sovereign rulers with fiscal authority.
Plassey (1757) opened the door to Company influence in Bengal, but Buxar (1764) cemented dominance.
Buxar was fought against combined Mughal, Awadh, and Bengal forces, making victory more decisive.
The subsequent treaty forced the Mughal emperor to formally grant diwani rights, legitimising Company control.
Even as Mughal power waned, British officials adopted Mughal practices for legitimacy.
They sought imperial sanads (grants) to justify authority.
They used Mughal revenue systems and bureaucratic structures to manage Bengal.
This blending of Mughal forms with Company power made the transition less disruptive for local elites.
Practice Questions
Question 1 (2 marks)
Name one European power other than Britain that competed for influence in India between 1730 and 1773, and briefly state its role.
Mark scheme:
1 mark for correctly identifying a relevant power (France, the Dutch).
1 mark for a brief explanation of its role (e.g. France fought Britain in the Carnatic Wars; the Dutch maintained limited commercial bases like Negapatam).
Question 2 (6 marks)
Explain how the decline of the Mughal Empire contributed to the growth of East India Company power in India between 1730 and 1773.
Mark scheme:
1–2 marks: Basic description with limited detail, e.g. “The Mughals were weak, so the Company became more powerful.”
3–4 marks: Developed explanation with specific reference, e.g. “The Mughal decline allowed regional nawabs to act independently, which the Company exploited through alliances.”
5–6 marks: Well-developed explanation with precise examples and analysis, e.g. “Mughal decline created political fragmentation, letting the Company ally with disaffected elites, as seen at Plassey (1757). The emperor’s grant of diwani rights in 1765 further illustrates how weakened Mughal authority gave the Company fiscal and territorial power.”
