British Settlement in India

🏴‍☠️ Background: Britain’s Entry into Eastern Trade

Let’s begin with a simple question:
Why did the British come to India?

They didn’t come to rule in the beginning — they came to trade.

During the 16th century, Europe was in the midst of what historians call the Age of Exploration. Countries like Portugal and Spain had already established strong naval dominance over eastern sea routes and trade. At this time, Britain was still weak and couldn’t challenge them directly.

But then came a turning point.

1588: Defeat of the Spanish Armada

In 1588, the powerful Spanish Armada (naval fleet) was defeated by the English. This event is considered a milestone in world history, because it marked the decline of Spanish and Portuguese dominance over the seas and opened up the eastern sea routes to other powers — including England.

Now, the British saw a window of opportunity.

🛳️ Formation of the East India Company (EIC)

1599: The ‘Merchant Adventurers’

A group of English merchants, excited by the profits of eastern trade, formed an association in 1599. They were called the Merchant Adventurers — people who were willing to take the risk of trading with the unknown East.

1600: Royal Charter from Queen Elizabeth I

On 31st December 1600, Queen Elizabeth, I gave them a Royal Charter — a formal royal document — that granted them the exclusive right to trade with the East, beyond the Cape of Good Hope.

Thus, the East India Company (EIC) was born.

• Initially, this charter gave them a 15-year monopoly, but in 1609, it was extended indefinitely.
• No other English company could now legally trade in the East.
• But — and this is important — this didn’t stop other European countries like the Dutch or the French from entering the Eastern market.

Also note: Queen Elizabeth I was not just a patron — she was a shareholder in the company. This shows how closely the English monarchy and the company were linked from the beginning.

🌍 Strategy Shift: From Spice to Textiles

The Dutch Threat in Indonesia

Initially, the EIC tried to break the Dutch monopoly over the spice trade in Indonesia. But they couldn’t succeed.

By the 1630s, they made a strategic decision:
👉 Abandon Indonesia and spice trade. Focus on Indian textiles and Chinese tea instead.
Why? Because these goods were more profitable and had high demand in Europe.

🇮🇳 Foundation of British Trade in India

Let’s now move to India — the land that would eventually become central to British power.

Early Attempts (1608–1611)

• In 1608, EIC tried to set up its first factory (trading post) at Surat.
• But the Portuguese blocked them.
• So, they sent Captain William Hawkins to the court of Mughal Emperor Jahangir to get trading rights.

Jahangir welcomed him warmly:

• Gave him the mansab (a Mughal rank) of 400 zat.
• Allowed him to trade in Surat (1611).

But this didn’t last long. Due to Portuguese political intrigues, Jahangir expelled Hawkins from Agra.

This incident made the British realise something:
👉 If they wanted to succeed in India, they’d have to defeat the Portuguese militarily and gain direct favour from the Mughal Court.

⚔️ The Battle of Swally (1612)

This was a game-changer.

• In 1612, Captain Thomas Best led the EIC’s naval forces.
• They defeated a Portuguese squadron near Swally (Suvali), close to Surat.
• They repeated this feat again in 1614.

🔹Result:
In 1613, the Mughal Emperor issued a royal Farman (imperial order), granting the English permission to set up factories at Surat, Cambay, Ahmedabad, and Goga.

That year, the British set up their first permanent factory in India at Surat.

🏛️ Mission of Sir Thomas Roe (1615–1618)

Even after this success, the British weren’t satisfied.
So, in 1615, they sent an ambassador, Sir Thomas Roe, to the Mughal Court.

He stayed there for three years, negotiating directly with Jahangir.

🔹 Outcome:

• Roe obtained an Imperial Farman that allowed the British to trade and set up factories throughout the Mughal Empire.
• This marked the real beginning of the British trading empire in India.

🤝 Why Did Mughals Support the British?

Here comes an important analytical point — Why would the powerful Mughals give so many concessions to a foreign company?

Three major reasons:

1. To counter the Portuguese
   – Mughals recognised British naval strength.
   – Wanted to use them to neutralise Portuguese dominance on the western coast.
2. To encourage competition
   – By supporting multiple foreign traders, Mughals hoped to get better deals and more profits.
3. Pressure tactics by the British
   – The British had started harassing Indian merchants and pilgrim ships going to Mecca or the Red Sea.
   – This forced the Mughals to grant concessions just to keep peace and trade running smoothly.

So, we can say, The British East India Company did not conquer India overnight. It entered like a humble trader, but with clear economic ambitions and military preparedness. Over time, it would turn these trading privileges into political power, eventually transforming into a colonial ruler.

This transformation from trade to rule is the central story of British expansion in India — and this chapter marks the very beginning of that journey.

🇬🇧 Growth of the East India Company (EIC) in India

[From Petty Traders to Powerful Players]

After gaining a foothold in India through the Surat factory (1613), the British East India Company began expanding its presence across the subcontinent. Let’s now understand how this gradual growth happened — geographically, politically, and strategically.

📍 EIC in South India: A Strategic Advantage

The British found South India much easier to enter compared to the North. Why?

✅ Two main reasons:

1. No strong Mughal presence in the South.
2. The once-mighty Vijayanagar Empire had collapsed in 1565 (Battle of Talikota). It was now replaced by small, fragmented states, lacking unity and military power.

🔹 1611: First Footsteps at Masulipatnam

• The British started trading at Masulipatnam, an important port on the east coast.
• In 1616, they opened a factory (trading post) there. This was their first (temporary) base in South India.

🔹 1632: The Golden Farman from Golconda

• Their position strengthened when the Sultan of Golconda gave them a Golden Farman.
• This allowed the British to trade freely in Golconda ports by paying 500 pagodas annually.
• This was a major diplomatic success for the EIC.

🏰 Shift to Madras: Foundation of Fort St. George

The EIC soon realised that Masulipatnam wasn’t ideal for long-term operations.

🔹 1639: A Better Opportunity at Madras

• They received a land grant from the Raja of Chandragiri (Damarla Venkatapathy Nayak).
• The English were allowed to:
  • Fortify the place
  • Administer it independently
  • Even mint coins
• In return, they agreed to share half the customs revenue with the Raja.

This gave birth to a fortified British settlement —
👉 Fort St. George (completed in 1644, named after England’s patron saint)

• This became the headquarters of the British in South India, replacing Masulipatnam.

🏙️ Chennai: From Chennapatanam to Madras

• The area where Madras now stands was once known as Tondaimandalam, part of Chola, Pandya, and Pallava empires in ancient times.
• In the 14th century, it came under Vijayanagar rule.
• In 1639, Francis Day and Andrew Cogan (EIC reps) bought the land to build the fort.
• The settlement around Fort St. George was called Chennapatanam, named after Chennappa Nayak, the father of the Raja who granted them the land.
• Eventually, it became known as Madras (later renamed Chennai).

🏗️ Fun Fact:

• Fort St. George was the first British fort built in India.

🏰 Other British Forts (Chronologically)

Location	Fort Name	Year Built
Madras	Fort St. George	1644
Bengal	Fort William	1700 (begun in 1696)
Bombay	Fort George	1769 (as part of Bombay’s fortifications)

🌊 EIC in the West: Rise of Bombay

🔹 1668: Bombay from the British Crown

• The island of Bombay came to EIC from King Charles II, who had acquired it as part of his dowry from the Portuguese upon marrying Princess Catherine of Braganza.
• The EIC leased it from the Crown at just 10 pounds a year!
• They immediately fortified it and made it their Western base.

🔹 1687: Western Presidency Shift

• The EIC shifted its Western Presidency headquarters from Surat to Bombay.
• This signified the decline of Surat’s importance and the rise of Bombay as the new commercial and strategic hub.

🏙️ Surat: The First Trade Gateway

• Located on the Tapi River, Surat was a major Mughal port city.
• The Portuguese were first to trade here in the early 1500s.
• Later, the Dutch and English displaced them in the early 1600s.
• In 1759, the British formally took control from the Mughals.
• By 1800, they had full control over Surat during the rule of Nasiruddin.

🌏 EIC in East: Bengal and Orissa

🔹 1633: Factory at Balasore (Orissa)

• The first eastern post of the British.

🔹 1651: Factory at Hugli (Bengal)

• Secured through a series of Farmans (1651, 1656, 1672).
• These Farmans exempted them from paying customs in return for an annual payment.
• This marked the beginning of their economic grip on Bengal.

📌 Major British Factories (Chronological Order)

Factory	Year Established
Surat	1613
Masulipatnam	1616
Patna	1620
Broach	1623
Balasore	1633
Madras	1639
Hugli	1651
Bombay	1668

⚔️ British Conflict with the Mughals: From Petitioners to Aggressors

🔹 Early Phase: Humble Petitioners

• Until the late 1600s, the British acted as submissive traders who petitioned the Mughal authorities for trading rights.
• But the attempt to fortify the Surat factory in 1625 without permission revealed their early ambitions.
• Mughal officials imprisoned EIC members for this.

🔹 Shift During Aurangzeb’s Rule (Late 17th Century)

• By now, the British had fortified settlements at Madras and Bombay.
• Their confidence grew due to:
  • Success in trade
  • Weakening Portuguese
  • Aurangzeb’s preoccupation with Maratha wars

👉 In 1686, the British did the unthinkable:
They attacked Hugli and declared war on the Mughal Empire.

🚫 A Miscalculation

• The British thought the Mughals would be too distracted or weak.
• But Aurangzeb retaliated strongly:
  • Drove the British out of Bengal
  • Seized Surat, Masulipatam, and Visakhapatnam
  • Bombay fort was besieged

🔻 Back to Square One

• Defeated and humiliated, the EIC begged for pardon.
• They once again became “humble petitioners”.

🤝 1690: Aurangzeb’s Pardon and Resumption of Trade

Despite the war, Aurangzeb allowed them back, under strict conditions:

• EIC had to pay a compensation of ₹1.5 lakh.
• Trade was resumed under Mughal protection.

🔎 Why did the Mughals pardon them?

1. EIC’s trade benefited Indian artisans and the treasury
2. Mughals underestimated the threat posed by foreign traders.
3. They feared English naval power, which could ruin India’s trade routes to:
   • Iran
   • West Asia
   • East Africa
   • East Asia

“The British came with ships and trade ambitions. But inside those ships were dreams of empire.”

From Masulipatnam to Madras, from Surat to Bombay, the EIC used a mix of diplomacy, force, and trade strategy to expand its influence.

By the end of the 17th century, the British were no longer just traders — they were aspiring rulers, ready to assert sovereignty when needed.

📈 Trading Concessions After 1690 – The Company’s Growing Power

Let’s now understand how the East India Company (EIC) went from being one among many traders to the most privileged foreign entity in India — all through concessions, diplomacy, and calculated bribery.

🧾 1691: First Big Break — Custom Duty Exemption in Bengal

• The EIC was exempted from paying customs duties in Bengal, in exchange for a fixed annual payment of ₹3,000.
• This was a huge financial advantage — while Indian merchants paid taxes on every transaction, the Company had a blanket exemption.

🔹 The EIC turned this into a strategic opportunity:

• They encouraged Indian merchants and artisans to settle near their factory — offering protection, tax relief, and trade security.
• As this area expanded, in 1696, the Company built a fort around the settlement.
• In 1700, this fortified area was named Fort William.
• It also became the seat of the Eastern Presidency, based in Calcutta (now Kolkata).
  • The first president was Sir Charles Eyre.

🏙️ 1698: Birth of Calcutta

• The Company bribed Mughal officials and acquired zamindari rights over three villages:
  1. Sutanati
  2. Kalikata (which evolved into Calcutta/Kolkata)
  3. Govindpur

This marked the beginning of Company-controlled territory in eastern India.

👑 1717: Farrukh Siyar’s Farmans – The Game-Changer

In 1717, Mughal Emperor Farrukh Siyar issued three Farmans (imperial orders) that dramatically increased British privileges.

These orders are often called the “Magna Carta of the East India Company.”

🔹 Why “Magna Carta”?

Just like the original Magna Carta (England, 1215) gave rights to barons and limited the king’s powers, these farmans gave the EIC legal and trade rights that became the foundation of British dominance in India.

📜 Key Terms of the 1717 Farmans:

1. Free Trade in Bengal
   – No duties to be paid, just an annual fee of ₹3,000.
2. Free Trade in Surat
   – Again, no duties, in return for ₹10,000/year.
3. Exemptions in Hyderabad
   – The Company retained old privileges, paid existing rent in Madras.
4. Company Coins Legalised
   – Bombay-minted coins were now accepted across the Mughal Empire.
5. Territorial Expansion in Calcutta
   – Company was allowed to rent more land around Calcutta.

⚠️ Impact of Farrukh Siyar’s Farmans:

• The EIC now had unfair advantage over Indian and foreign merchants.
• It was a serious revenue loss for the Mughal state.
• The EIC’s trade grew rapidly, but state income did not — this became a point of contention later.

🥊 English Rivalries in India: Portuguese & Dutch

⚔️ English vs Portuguese

• After Thomas Roe secured the Imperial Farman (1615), the Portuguese felt threatened.
• A naval war broke out in 1620 and ended in 1630 — British victory.
• In 1662, the Portuguese king John IV gave the Island of Bombay to King Charles II of England as dowry for marrying Princess Catherine of Braganza.
• In 1668, Charles II leased Bombay to the EIC for ₹10 per year.

🤝 Luso-English Treaty (1661)

This treaty formalised the Anglo-Portuguese alliance.

🇬🇧 What England got:

• Seven Islands of Bombay
• Tangier in Morocco
• Trading rights in Brazil and East Indies
• Religious and commercial freedom in Portugal
• 2 million Portuguese crowns (~£300,000)

🇵🇹 What Portugal got:

• British military and naval support against Spain
• Religious liberty for Queen Catherine

🗺️ Seven Islands of Bombay:

1. Bombay
2. Colaba
3. Old Woman’s Island (Little Colaba)
4. Mazagaon
5. Parel
6. Worli
7. Mahim

These islands were later merged to form modern Mumbai.

⚔️ English vs Dutch

• Their rivalry began in 1654 and ended (on paper) in 1667.
• Treaty outcome:
  • The Dutch got Indonesia
  • The British retained India, Ceylon, and Malaya

However, tensions continued:

• By 1795, the British had fully driven out the Dutch from India.

🏙️ Strategic Importance of British Settlements

The Company built three main fortified settlements:

City	Strategic Advantage
Madras (Chennai)	Stronghold in South India
Bombay (Mumbai)	Naval base on West coast
Calcutta (Kolkata)	Power centre in East India

🔹 Why were these locations important?

1. Fortified cities with access to the sea.
2. If any Indian ruler turned hostile, the British could escape by sea.
3. In times of political instability, these coastal bases became military launchpads for expansion.

“A trading company was slowly becoming a territorial power.”

By 1717, the EIC was no longer just a group of merchants. With the Magna Carta Farmans, fortified cities, and naval supremacy, it now had:

• Legal rights
• Military strength
• Political influence

This laid the foundation for British colonisation — not through invasion, but through paper, privilege, and ports.