British Conquest of Bengal (1757–1765)
By the middle of the 18th century, Bengal was not just another Mughal province — it was the jewel.
Fertile fields, thriving industries, bustling ports — it was the richest province in India. Whoever controlled Bengal would command both immense wealth and strategic power. Naturally, this drew the attention of not just Indian rulers but also European trading companies — the Dutch, the French, and most importantly, the English East India Company (EIC).
Why Bengal Mattered So Much
For the EIC, Bengal was the heart of their Indian trade network. From here, they exported:
- Cotton textiles and silk – prized in European markets.
- Indigo – a key dye for textiles.
- Saltpetre – essential for making gunpowder.
In fact, these exports formed the bulk of British trade from India. So, losing Bengal was unthinkable for the Company — and gaining more privileges there was a top priority.
A Profitable Beginning for the Company
The Company had already secured some privileges from the Mughal emperor Farrukh Siyar through the Royal Farman of 1717.
This farman granted the EIC:
- Freedom to export and import goods in Bengal without paying any taxes.
- Right to issue passes (dastaks) for the movement of such goods.
On paper, these benefits were meant only for the Company’s foreign trade. The private internal trade of the Company’s servants was still supposed to pay normal taxes like Indian merchants.
The Reality – A Loophole Turns into a Weapon
Here’s where things went wrong for Bengal.
The Company’s European servants were paid low salaries, but they could make a fortune through private trade inside India. And since the Company had the right to issue dastaks — tax exemption passes — the temptation to misuse them was too strong.
- Misuse #1 – Company servants used dastaks for their own private trade, avoiding all taxes.
- Misuse #2 – They even sold dastaks to Indian merchants, allowing them to evade taxes too.
The Impact on Bengal’s Economy
For Bengal’s provincial government (Nawab), this was disastrous:
- The state lost revenue — the Company paid just Rs. 3,000 annually for these privileges, while their exports were worth over £50,000 a year.
- Local Indian merchants faced unfair competition, because the Company’s traders could sell goods cheaper by avoiding taxes.
It’s no surprise, then, that Bengal’s Nawabs viewed the 1717 farman as a perpetual source of conflict. What began as a trade privilege soon became the first crack in Bengal’s political independence.
From Conflict to Conquest
By the 1750s, the EIC was no longer satisfied with being just a privileged trader. Its growing commercial ambitions — and the aggressive private trading of its officials — brought it into direct confrontation with the Bengal Nawabs.
Between 1757 and 1765, Bengal saw three Nawabs — Siraj-ud-Daula, Mir Jafar, and Mir Qasim — come and go. But none of them could stop the Company’s growing influence. And within just eight years, power in Bengal shifted from the Nawab’s court to the British East India Company.
The Battle of Plassey (1757) – A Turning Point in Indian History
The seeds of the Battle of Plassey were sown long before the first shot was fired. For decades, Bengal’s Nawabs — from Murshid Quli Khan to Alivardi Khan — had resisted the English East India Company’s broad interpretation of the 1717 Farman. They made sure the Company paid lump sums to the treasury and curbed the misuse of dastaks.
But in 1756, the situation changed dramatically when Siraj-ud-Daulah became Nawab.
Why Tensions Escalated Under Siraj-ud-Daulah
Siraj came to power at a time when the English felt emboldened:
- Military confidence – They had recently defeated the French in the Second Carnatic War (1749–54).
- Political awareness – They had realised the growing weakness of Indian states after Aurangzeb’s death.
Instead of following the earlier compromises, the Company began openly challenging the Nawab’s authority. The tensions had many layers:
- Misuse of trade privileges by Company officials for private trade.
- Fortification of Calcutta without the Nawab’s permission.
- Sheltering fugitives – The English gave refuge to Krishna Das, son of Raj Ballabh, who had escaped with huge wealth.
- Refusal to mint coins for the Nawab.
- Open disrespect – Siraj accused the Company of avoiding taxes, writing insulting letters, and undermining his position.
The Breaking Point
The immediate trigger was the Third Carnatic War between the English and French in South India. Anticipating that the war might spill into Bengal, the English began strengthening their fortifications in Calcutta without approval.
Siraj feared that if English and French forces clashed in Bengal, he would end up like the Nawabs of the Carnatic — mere spectators in their own territories. So he ordered both the English (in Calcutta) and the French (in Chandernagore) to demolish their fortifications and keep Bengal free of their conflict.
- The French obeyed.
- The English refused.
For Siraj, this was a direct challenge to his sovereignty.
The Siege of Calcutta and the Black Hole Incident
Siraj acted decisively. He:
- Seized the English factory at Kasimbazar.
- Marched to Calcutta, capturing Fort William on 20 June 1756.
Then came the infamous Black Hole Incident — according to John Holwell, 146 English prisoners were confined overnight in a small 18×14-foot room, with 123 dying of suffocation and dehydration.
However, later historian J. H. Little argued that this was greatly exaggerated, claiming far fewer men were involved and that most deaths were from battle wounds.
English Recovery and Conspiracy in Bengal
After the fall of Calcutta, Siraj left the city to celebrate. The English escaped by ship to Fulta, waiting for reinforcements from Madras.
During this time, the Company’s officials began conspiring with Siraj’s own court members.
Leading conspirators included:
- Mir Jafar – Mir Bakshi (commander of the army)
- Rai Durlabh – Senior noble
- Manick Chand – Officer-in-charge of Calcutta
- Amir Chand – Wealthy merchant
- Jagat Seth – Bengal’s richest banker
- Khadim Khan – Military officer
These disgruntled elites saw Siraj as impulsive and feared for their own power. They struck a secret deal with the British: Mir Jafar would become Nawab if he supported them against Siraj.
Treaty of Alinagar (February 9, 1757)
Before the final confrontation, reinforcements arrived from Madras under Admiral Watson and Colonel Robert Clive. In a surprise attack, the English retook Calcutta in early 1757, forcing Siraj to sign the Treaty of Alinagar.
Key terms:
- Restored all privileges granted in the 1717 Farman.
- Allowed the Company duty-free trade.
- Granted permission to build further fortifications.
- Gave the Company the right to operate a mint.
On paper, Siraj remained sovereign. In reality, this treaty greatly strengthened the Company’s position in Bengal and set the stage for the Battle of Plassey a few months later.
The Battle of Plassey (23 June 1757) – A Battle Decided Before It Began
After the Treaty of Alinagar in February 1757, the English East India Company (EIC) was in a stronger position than before — but they were not satisfied. Their ambitions went beyond trade privileges. They wanted a Nawab who would be entirely under their influence.
Siraj-ud-Daulah, for all his inexperience, was not willing to become a puppet. So, the Company decided to replace him with Mir Jafar, the Nawab’s commander-in-chief (Mir Bakshi), who was already part of a conspiracy with other discontented nobles.
The Road to Plassey
To provoke a confrontation, the English presented Siraj with demands so unreasonable that he could not possibly agree. When he resisted, they accused him of violating the Treaty of Alinagar and prepared for war.
Both sides now realised that a decisive clash was inevitable. The chosen battlefield was Plassey (Palashi), a small village on the banks of the Bhagirathi river.
The “Battle” That Wasn’t
On 23 June 1757, Siraj’s army faced Clive’s much smaller force. But in reality, the battle had already been settled off the battlefield.
- Two key commanders of Siraj — Mir Jafar and Rai Durlabh — kept their troops inactive, in line with their secret pact with the British.
- Only a small contingent, led by Mir Madan and Mohanlal, fought bravely.
- When Mir Madan was killed in action, the morale of the loyal troops collapsed.
Siraj, sensing betrayal, fled the battlefield. He was soon captured and executed by Miran, Mir Jafar’s son.
Thus, the English victory at Plassey was less a result of military superiority and more the product of political conspiracy and court factionalism.
Aftermath – Mir Jafar on the Throne
The British installed Mir Jafar as the new Nawab. In return, he:
- Guaranteed and even extended the Company’s commercial privileges.
- Allowed free trade in Bengal, Bihar, and Orissa.
- Granted the zamindari of 24 Parganas to the Company.
- Paid Rs. 17,700,000 as compensation for the earlier attack on Calcutta.
The Company, in turn, promised not to interfere in the Nawab’s administration — a promise that, as history shows, they never kept.
Significance of the Battle of Plassey
- Foundation of British Rule – Plassey marked the real beginning of colonial control in India.
- Shift from Traders to Rulers – The EIC moved from purely commercial activities to active territorial control.
- Nawab’s Dependence – The Nawab became a client ruler, dependent on British military support.
- British Prestige – Their status soared, making them a serious contender for all of India.
- Court Factionalism Exposed – The battle revealed the extent of division among Indian elites.
- Economic Exploitation – The Company and its officials amassed immense wealth, draining Bengal’s resources.
- Strategic Advantage – Rich Bengal revenues funded a strong British army, enabling further conquests.
- Impact on Anglo-French Rivalry – Control of Bengal tilted the larger European contest in Britain’s favour.
From Ally to Obstacle – Mir Jafar’s Decline
Initially, Mir Jafar was useful to the Company. But soon, his military weakness and inability to meet the EIC’s escalating financial demands became a problem.
- The Company wanted Bengal’s revenues to cover the expenses of Bombay and Madras Presidencies and pay for their export trade from India.
- Mir Jafar could not deliver.
Frustrated, he turned to the Dutch at Chinsura for support. But the Dutch were defeated at the Battle of Bedara (Hooghly), November 1759.
By October 1760, the British had lost patience. They forced Mir Jafar to abdicate in favour of his son-in-law, Mir Qasim (Mir Kasim).
Mir Qasim and the Road to the Battle of Buxar (1764)
When Mir Qasim replaced Mir Jafar as the Nawab of Bengal in 1760, it was not out of love for the Company — it was because the Company wanted someone who could meet their ever-growing financial demands. And initially, Mir Qasim played along.
- He paid the Company’s dues in full.
- He granted them the zamindari of Burdwan, Midnapore, and Chittagong.
- He gave lavish gifts worth 29 lakh rupees to top English officials.
The British believed they had found another compliant puppet. But they were wrong.
A Capable and Ambitious Ruler
Unlike his predecessor, Mir Qasim was efficient, intelligent, and strong-willed. His real aim was to free Bengal from foreign control and rebuild it as an independent state.
His first steps were bold and symbolic:
- Capital shifted – From Murshidabad (too close to Calcutta) to Monghyr (Munger) in Bihar, to keep a safe distance from Company interference.
- Administrative overhaul – Filled the bureaucracy with loyal men of his own choosing.
- Military reforms – Remodelled the army, set up a firearms factory, and trained troops for greater efficiency.
- Financial discipline – Reduced unnecessary expenditure, curtailed privileges of zamindars, and appointed revenue farmers in place of rebellious landholders.
In short, Mir Qasim was preparing Bengal to stand on its own feet — something the Company could never tolerate.
The Dastak Problem – Leveling the Playing Field
One of Mir Qasim’s boldest moves concerned internal trade duties.
The Company’s servants misused the dastaks (passes) granted by the 1717 Farman to evade all taxes on their goods, while Indian merchants had to pay full duties. This created unfair competition — British private traders could sell cheaper and ruin Indian traders, all while depriving the state of revenue.
When Mir Qasim failed to stop this misuse directly, he abolished all internal trade duties for two years.
This meant:
- Indian merchants now traded duty-free, just like the Company’s men.
- British traders lost their unfair advantage and began complaining loudly, demanding that duties on Indian traders be restored.
For the Company, this was a clear sign — Mir Qasim was not the pliable ruler they wanted.
Towards Confrontation
Mir Qasim believed he had paid enough to secure independence from Company interference. But the Company believed he existed to serve their demands.
By 1763, relations had collapsed. The immediate trigger was again the abuse of dastaks — but the deeper cause was the clash between Mir Qasim’s independent policies and the Company’s imperial ambitions.
When the British launched a surprise attack on Patna, it escalated into full-scale war.
Defeat and Flight
Mir Qasim fought fiercely, but in 1763, British forces under Major Adams defeated him in several engagements. He fled to Awadh, seeking allies.
There, he forged a triple alliance with:
- Shuja-ud-Daulah – Nawab of Awadh
- Shah Alam II – Mughal Emperor
- Himself – the exiled Nawab of Bengal
This was a formidable coalition — but it would meet its fate at Buxar.
The Battle of Buxar (22 October 1764) – A Decisive Turning Point
The allied army of Mir Qasim, Shuja-ud-Daulah, and Shah Alam II faced the Company’s troops under Major Hector Munro at Buxar.
- The Indian forces were numerically superior.
- But the British had better discipline, superior artillery, and coordinated strategy.
The result was a decisive defeat for the allies.
Significance of Buxar
- More decisive than Plassey – Plassey had given the British influence; Buxar gave them undisputed political control over Bengal, Bihar, and Orissa.
- Awadh under British pressure – Shuja-ud-Daulah was now at their mercy.
- Mughal Emperor as a dependent – Shah Alam II fell into British hands, leading to formal recognition of their authority in Bengal.
- Military supremacy established – Buxar proved the Company’s army could defeat the combined forces of two major Indian powers.
From here onwards, the British were no longer just traders or conspirators — they were the real rulers of eastern India.
After the Battle of Buxar – Bengal Under the Company’s Shadow
The Battle of Buxar (1764) did not just end with a military victory for the English East India Company (EIC); it marked the complete collapse of Bengal’s independence. The final steps to cement British control came in the months that followed.
Restoring Mir Jafar (1763–1765)
Even before Buxar, when the war with Mir Qasim broke out in 1763, the Company had brought back Mir Jafar to the throne. In exchange, he:
- Handed over Midnapore, Burdwan, and Chittagong to the Company — strategically important districts whose revenues were used to maintain the Company’s army.
- Allowed duty-free trade for the Company in Bengal (with only a token 2% tax on salt).
But Mir Jafar’s health was failing. He died soon after Buxar, leaving the throne to his son Nizam-ud-Daulah.
Nizam-ud-Daulah and the Puppet Arrangement
The Company wasted no time. On 20 February 1765, they signed a treaty with Nizam-ud-Daulah that:
- Forced him to disband most of his army.
- Made him administer Bengal through a Deputy Subedar nominated by the Company — someone he could not dismiss without British approval.
Another agreement on 30 September 1765 required the Company to pay him ₹53,86,131 annually for the Nizamat (administrative and household expenses).
On paper, the Nawab still ruled Bengal. In reality, political authority had shifted entirely to the Company.
The British ‘Resident’ – A New Tool of Control
After Buxar, the Company began appointing Residents in Indian states. These were political and commercial agents whose real job was to:
- Watch over the court.
- Influence key decisions.
- Decide, directly or indirectly, who would succeed to the throne or hold high offices.
Through the Resident system, the Company became the unseen but decisive power in court politics.
Treaty of Allahabad (16 August 1765) – The Formal Takeover
The Treaty of Allahabad was the diplomatic masterstroke that gave the British legal authority to collect revenues from Bengal, Bihar, and Orissa — turning them from foreign traders into ruling administrators.
With the Nawab of Awadh – Shuja-ud-Daulah
- Paid the Company ₹50 lakh as war indemnity.
- Awadh was returned to him, but Kora and Allahabad were taken away.
- Signed a defensive alliance – The Company promised protection from external threats, but Awadh had to pay for any British troops sent for his defence.
Why the British didn’t annex Awadh:
Clive saw Awadh as a buffer state between Company territories and the Marathas/Afghans. Annexing it would mean defending a long, exposed frontier. Instead, it was safer to keep Awadh as an ally, dependent on British protection.
With the Mughal Emperor – Shah Alam II
- Shah Alam II granted the Company the Diwani (right to collect revenue) of Bengal, Bihar, and Orissa.
- In return, the Company paid him ₹26 lakh annually and bore the expenses of the Nizamat.
- He received possession of Kara and Allahabad.
On 12 August 1765, the Emperor issued a Farman confirming the grant of Diwani.
But the reality was grim — Shah Alam II lived in Allahabad for six years as a virtual prisoner of the Company.
In 1772, Warren Hastings stopped paying the ₹26 lakh tribute and even handed over Allahabad and Kora to the Nawab of Awadh.
The New Political Order in Bengal (End of 1765)
- The Nawab remained the Nazim in name — responsible for defence, law, order, and justice.
- But the Company controlled all revenue collection.
- Revenue from Bengal was now used to finance British exports from India and to expand their military power.
Why Buxar Was More Important Than Plassey
- Plassey (1757) – Gave the British influence and the first foothold in Bengal.
- Buxar (1764) – Gave them complete political control over Bengal’s resources and legal authority as Diwan.
- The Nawabs were now puppets, and the Mughal Emperor was a dependent ally.
- With Bengal’s rich revenues, the British could fund the conquest of the rest of India.
The Dual System of Administration in Bengal (1765–1772)
When Robert Clive returned as Governor of Bengal in 1765, he faced a peculiar challenge:
The British East India Company had become Diwan of Bengal, Bihar, and Orissa (collecting revenue) but did not want to be seen as openly ruling. They still preferred to keep the Nawab as the nominal head of administration, for political convenience and to avoid direct blame for governance failures.
Clive’s solution was the Dual Government System — an arrangement where power and responsibility were deliberately separated.
How the Dual Government Worked
- Company as Diwan – Directly collected revenue from Bengal’s peasants and merchants.
- Nawab as Nazim – Retained responsibility for law, order, and justice.
But here was the twist:
The Company nominated the Deputy Subahdar (Deputy Nazim) as well, so in reality both branches — revenue and administration — were under Company influence.
The same person often served as Deputy Diwan (for the Company) and Deputy Subahdar (for the Nawab), making the “two governments” a mere illusion.
Why It Favoured the Company
- Power without responsibility – The Company enjoyed complete control over Bengal’s finances without being accountable for governance failures.
- Responsibility without power – The Nawab had to take the blame for any misrule, but lacked the authority to fix it.
This arrangement was perfect for the Company’s interests but disastrous for Bengal.
Consequences for Bengal
The Dual Government quickly became corrupt and exploitative:
- Drain of wealth – The Company no longer sent bullion from England to buy Indian goods; instead, they purchased goods using Bengal’s own revenue and sold them abroad for profit.
- Neglect of welfare – Neither the Nawab nor the Company cared for the people’s needs.
- Devastating famine of 1770 – Caused mainly by monsoon failure, but the Dual System’s mismanagement worsened the disaster. Almost one-third of Bengal’s population perished.
The End of Dual Government
By 1772, the system had collapsed under the weight of corruption, inefficiency, and public misery.
Warren Hastings, as the new Governor of Bengal, abolished the Dual Government and brought Bengal under direct Company administration.
The ‘Nabobs’ – British Officials Living Like Indian Rulers
After the Battle of Plassey (1757), Company officials began receiving enormous personal gifts from the Nawabs of Bengal. Many returned to Britain with vast fortunes, living in ostentatious style.
These wealthy returnees were mockingly called ‘Nabobs’ — an English corruption of the Indian word Nawab. Their flashy lifestyles and sudden wealth often attracted public resentment in Britain.
Robert Clive – Architect of British Power
- Joined the EIC in 1743 as a clerk.
- Rose to prominence in the Carnatic Wars, especially at the Siege of Arcot (1751).
- Played the decisive role in the Battle of Plassey (1757), laying the foundation of British dominance in Bengal.
- Served as Governor of Bengal twice (1757–60, 1765–67).
- By the time he left India in 1767, his fortune was estimated at £401,102 — an enormous sum for the time.
Back in Britain, Clive faced parliamentary investigation in 1772 over charges of corruption. Though acquitted, the stress and public criticism took a toll. In 1774, he committed suicide, leaving behind a legacy as both the founder of British power in India and a symbol of its greed.
